CALGARY, ALBERTA--(Marketwire - Oct. 17, 2012) - NuVista Energy Ltd. ("NuVista") (TSX:NVA) is pleased to announce that it has closed its previously announced sale of three property packages for gross proceeds of $236 million. The dispositions include a large portion of NuVista's W5 natural gas assets plus selected W4 heavy oil assets. Specific assets in the dispositions include: Ferrier, Alder Flats and Easyford in the W5 operating area; and Chauvin, Auburndale and Wildmere in the W4 operating area. Proceeds from the dispositions were used to reduce bank indebtedness.
Concurrent with the closing of these dispositions, the borrowing limit of NuVista's credit facility was re-determined by its lenders at $240 million. Following the closing of these dispositions, NuVista's bank indebtedness totaled approximately $120 million.
Looking ahead, NuVista will focus on the development and delineation of its large land base in the condensate-rich Alberta Montney area where it has approximately 172 gross (157 net) sections of land. Given the additional flexibility created by the dispositions, we are now analyzing various activity ramp-up scenarios in the Montney. We are in a favorable land expiry position therefore there is significant optionality in capital ramp-up, particularly with the financial flexibility being created by these dispositions. NuVista has the balance sheet flexibility and an inventory of opportunities to deliver significant economic growth for the future. We expect to provide further guidance on our 2013 plans in our third quarter results press release on November 7, 2012.
ADVISORY REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") 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. More particularly and without limitation, this press release contains forward looking statements, NuVista's future strategy, plans, opportunities and operations; drilling, development, completion and tie-in plans and results; future land expiries; NuVista's planned capital program and budget; and the anticipated potential of NuVista's asset base. By their nature, forward-looking statements are based upon certain assumptions and are subject to numerous risks and uncertainties, some of which are beyond NuVista's control, including the impact of general economic conditions, industry conditions, current and future commodity prices, currency and interest rates, anticipated production rates, borrowing, operating and other costs and funds from operations, the timing, allocation and amount of capital expenditures and the results therefrom, anticipated reserves and the imprecision of reserve estimates, the performance of existing and future wells, the success obtained in drilling new wells, the sufficiency of budgeted capital expenditures in carrying out planned activities, competition from other industry participants, availability of qualified personnel or services and drilling and related equipment, stock market volatility, effects of regulation by governmental agencies including changes in environmental regulations, tax laws and royalties; the ability to access sufficient capital from internal sources and bank and equity markets; and including, without limitation, those risks considered under "Risk Factors" in our Annual Information Form. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. NuVista's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements, or if any of them do so, what benefits NuVista will derive therefrom. NuVista disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.