NuVista Energy Ltd. Announces Increase in 2008 Capital Budget
CALGARY, ALBERTA--(Marketwire - Oct. 2, 2008) - NuVista Energy Ltd.'s (TSX:NVA) ("NuVista's") Board of Directors has approved an increase in NuVista's 2008 capital expenditure budget to $205 million from $175 million. With strong commodity prices in the first half of 2008, NuVista has significantly reduced its debt levels related to the business combination with Rider Resources Ltd. ("Rider") and has the financial flexibility to increase its capital spending while maintaining a strong balance sheet. The majority of the projected increase in capital expenditures will be directed toward adding to NuVista's significant landholdings in our Wapiti core area. Since March 2008, NuVista's net undeveloped land position in the Wapiti area has increased to over 100,000 net acres.NuVista acquired production and significant landholdings in the Wapiti area through the business combination with Rider in March 2008. Production in Wapiti has grown from 2,800 boe/d when Rider acquired the property in March 2007, to a current rate of approximately 5,000 boe/d. This increase has resulted from an ongoing exploitation program involving the drilling of high impact vertical wells exploiting conventional reservoirs. The stacked horizons and deep basin nature of production in the Wapiti area also lends itself to large gas in place resource deposits.Over the long term NuVista continues to believe that disciplined execution of our acquire and develop business model represents the best way to provide balanced and profitable growth for our shareholders. NuVista will continue to prudently allocate capital between exploration and development, and strategic acquisitions. NuVista plans to allocate capital in a disciplined manner to a number of different conventional and resource plays in Wapiti, and will continue to maintain our financial flexibility by controlling the timing and pace of expenditures. Success in any one of these play types has the potential to provide NuVista with a multi-year prospect inventory. Additional guidance pertaining to NuVista's projected 2009 capital expenditures will be forthcoming with the release of NuVista's third quarter results on October 30, 2008.Investor InformationNuVista is an independent Canadian oil and natural gas exploration, development and production company with its common shares trading on the Toronto Stock Exchange under the symbol "NVA".Advisory Regarding Forward-Looking Information and StatementsThis press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "will", "believe", "plans", "potential" and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this press release contains forward looking statements and information concerning: NuVista's resources, undeveloped land holdings, business strategy, capital spending plans, future development and growth opportunities, prospects and asset base; the anticipated benefits from the transactions referred to in this press.The forward-looking statements and information in this press release are based on certain key expectations and assumptions made by NuVista, including expectations and assumptions concerning: prevailing commodity prices and exchange rates; applicable royalty rates and tax laws; future well production rates; reserve and resource volumes; the performance of existing wells; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour and services; and the receipt, in a timely manner of regulatory approvals. Although NuVista believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because NuVista can give no assurance that they will prove to be correct. There is no certainty that NuVista will achieve commercially viable production from its undeveloped lands and prospects.Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to the risks associated with the oil and gas industry in general such as: operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation or petroleum and natural gas and loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; stock market volatility; and changes in legislation, including but not limited to tax laws, royalty rates and environmental regulations.Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of NuVista are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).The forward-looking statements and information contained in this press release are made as of the date hereof and NuVista undertake no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.Boe AdvisoryThe term "Boe" or barrels of oil equivalent may be misleading, particularly if used in isolation. A Boe conversion ratio of six thousand cubic feet per barrel (6 Mcf: 1 Bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.