Overview
In July 2008, NuVista will celebrate its fifth anniversary as an exploration and production (E&P) company following the reorganization of Bonavista Petroleum Ltd. As our results demonstrate, we have delivered on the promises made to our stakeholders five years ago.
Since inception, we have doubled our undeveloped land per share, tripled our prospect inventory per share, and increased our net asset value per share by approximately five times. From July 2003 to March 2008 (57 months) NuVista has achieved compounded annual growth rates of approximately:
- 30% in production per share
- 35% in funds from operations per share
- 40% in reserves per share
We have also established
a strong team of over 105 dedicated and talented
individuals. Our ability to execute on our business
strategy consistently, regardless of the market
environment, and to seize the day when opportunities
present themselves is widely recognized within
our industry.
On March 4 of 2008, NuVista completed our largest
transaction to date, the business combination
with Rider Resources Ltd. and an $84 million private
placement equity financing with the Ontario Teachers’
Pension Plan. With the NuVista-Rider business
combination, we are positioned as a premiere,
intermediate E&P company. We have a concentrated
asset base with high working interests, low-cost
production, a large prospective land base, and
a business plan that employs a proven and disciplined
approach. We will deliver balanced growth by prudently
investing capital in shallow gas, deep gas, heavy
oil, and acquisitions.
NuVista Today
- One of the most respected teams in the industry with a proven track record of adding value;
- Production of approximately 26,500 boe/d, with a 77% gas weighting;
- Concentrated operations with high working interests;
- Eight core areas – four areas with deeper, liquids-rich natural gas targets (W5M and W6M) and four areas with shallow gas and heavy oil targets (W3M and W4M);
- Undeveloped land of 764,000 net acres with a 77% average working interest;
- A large, proprietary seismic data base;
- A rich and growing inventory of drilling opportunities;
- Proven plus probable reserves of over 70 million boe;
- A pro forma debt to funds from operations below two times, which is targeted to be less than one and one half times by the end of 2008, creating significant financial flexibility to pursue acquisition opportunities;
- A market capitalization of $1.2 billion; and
- Approximately 79 million outstanding shares with a significant level of ownership by management and directors, large institutional shareholders, and strategic partners. This support will provide NuVista with a favourable cost of capital to complete acquisitions within our industry as junior companies look for exit strategies and conventional E&P trusts look to redefine their corporate structures over the next three years.
March 2008
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