The Alberta Deep Basin core region is comprised of NuVista’s Wapiti, Kaybob-Waskahigan, Pembina and Ferrier-Sunchild operating areas. This core region was created in 2008, following the business combination with Rider Resources Ltd. Since then, NuVista has expanded the region’s undeveloped land position and broadened its production profile. This region is expected to play an important role in our future growth.

NuVista has extensive undeveloped land holdings in the Alberta Deep Basin core region totalling approximately 251,000 net acres with an average working interest of 82%. The majority of these lands are in large contiguous blocks where we hold interests in multiple prospective zones including the Cardium, Dunvegan, Notikewin, Fahler, Cadomin, Rock Creek, Nikanassin and Montney. Despite increased competition for undeveloped land in this region throughout 2009, NuVista continued to add acreage at a reasonable cost.

This region’s production averaged 14,097 boe/d in 2009, up from 11,826 boe/d in 2008. This 19% increase was achieved primarily through the drill bit from internally generated projects and a complementary acquisition completed in 2009. This core region’s production contributed 53% of NuVista’s total production. In 2009, we drilled 20 (12.4 net) wells and achieved an average success rate of 95%, resulting in 18 gas wells, one oil well and one dry hole.

With nearly 70% of our budgeted exploration and development expenditures allocated to this region, the Deep Basin will continue to be a focus area for NuVista. We have drilled 30 wells in 2010 using both vertical and horizontal drilling techniques. This includes testing a number of new concepts, each of which will set up multiple follow up development locations in future years.

Average production for this region in 2010 is currently 14,500 boe/d.

September 2010