CALGARY, ALBERTA--(Marketwire - July 12, 2010) - NuVista Energy Ltd. ("NuVista") (TSX:NVA) is pleased to provide the following operational update on the production test of its first Wapiti Montney horizontal well at
9-22-68-8W6M, as part of its 2010 program of evaluating repeatable high resource-in-place opportunities.
NuVista's first Montney horizontal well in the Wapiti operating area was drilled at 9-22-68-8W6M in the first quarter of 2010 and was completed in late June with multi-stage water based fracture stimulations over 11 intervals. The final test rate for the well, over an eight hour period, was 10 mmcf per day of burnable formation gas at 1,100 psi wellhead flowing pressure with flowing pressures increasing during the test. The well was also producing approximately 250 bbls per day of free condensate. Analysis of the gas stream suggests the formation gas is also liquids-rich bringing total anticipated liquid yields from the well to approximately 50 bbls per mmcf (including the free condensate). The tie-in of this well is currently underway with an anticipated on-stream date of September 1, 2010. The H2S concentration in the gas stream during the production test was 4.5%.
A second Montney horizontal well at 13-33-65-6WM commenced drilling last week. This well is located approximately 20 miles away from the first well and is designed to establish productive capability on our second contiguous Montney acreage position to the south. NuVista has a total of 167 gross sections on the Montney trend in our Wapiti operating area with an average working interest of 94% and each of our northern and southern Montney land blocks contain 60-70 contiguous sections of prospective lands.
Based upon the success of the first Wapiti Montney horizontal well, we expect to begin drilling two additional delineation horizontal wells on the northern Montney block in late 2010. The extended production tests and the results of the delineation horizontal wells will then be used to begin planning for a NuVista operated sour gas processing facility scheduled to be on-stream prior to the end of 2012.
NuVista recently drilled its first operated Cardium horizontal well in Wapiti and has initiated drilling of its second operated Cardium horizontal well. Completion results from these operated wells and non-operated Wapiti Cardium wells, and an update on other wells currently being completed as part of our 2010 capital program, are expected to be included in our second quarter results press release.
As NuVista continues to implement the largest high impact drilling program in our history, we look forward to continuing to update our shareholders on future success.
NuVista 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 Statements
This 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", "expects", "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: anticipated liquid yields from the Montney horizontal well and the timing of bringing this well on production; plans to drill additional delineation Montney horizontal wells and the results therefrom; plans to construct a sour gas processing facility and its anticipated completion date; and expectations regarding the timing of drilling and completing additional Cardium wells and other wells by NuVista and its partners.
The forward-looking statements and information in this press release are based on certain key expectations and assumptions made by NuVista, including 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 and other required 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 of 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 undertakes 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.
This press release contains test results for various NuVista wells. Actual production from these wells could differ materially from these test results.