This core region straddles the Alberta-Saskatchewan border near Lloydminster, Alberta, and includes heritage assets, properties acquired through strategic acquisitions, and internally generated prospects. The area is characterized by shallow production, prospective for natural gas and heavy oil in multiple horizons. NuVista controls the majority of infrastructure in our operating areas, which provides an effective barrier to entry for competitors.

In 2009, our undeveloped land position in this region totaled 488,000 net acres. We participated in 40 (34.2 net) wells in 2009, taking advantage of the Alberta royalty and drilling credit program. This activity resulted in 15 gas wells, 16 oil wells and nine dry holes. In 2009, NuVista drilled and completed seven horizontal Birdbear oil wells in Saskatchewan (75.7% working interest) as part of the ongoing pool development and three oil wells at Onion Lake. Average production in this region was 10,477 boe/d (2008 – 12,494 boe/d).

We have drilled 20 wells in 2010. Average production is currently 8,800 boe/d.

September 2010