NuVista Energy Ltd. Announcing 2004 Year End Results
NEWS RELEASE TRANSMITTED BY CCNMatthews FOR: NUVISTA ENERGY LTD. TSX SYMBOL: NVA FEBRUARY 24, 2005 - 22:32 ET NuVista Energy Ltd. Announcing 2004 Year End Results CALGARY, ALBERTA--(CCNMatthews - Feb. 24, 2005) - NuVista Energy Ltd. (TSX:NVA) is pleased to announce its financial and operating results for the three months and year ended December 31, 2004 as follows: /T/ ------------------------------------------------------------------------ Corporate Highlights ------------------------------------------------------------------------ Three Months Year ended ended December 31, % December 31, 2004 2003 Change 2004 ------------------------------------------------------------------------ (restated) Financial ($ thousands, except per share) Production revenue 24,601 13,061 88 79,398 Cash flow from operations (1) 15,222 8,052 89 49,871 Per share - basic 0.38 0.22 73 1.29 Per share - diluted 0.36 0.21 71 1.25 Net income (2) 5,715 2,878 99 18,322 Per share - basic 0.14 0.08 75 0.47 Per share - diluted 0.14 0.08 75 0.46 Total assets 173,531 94,374 84 173,531 Bank loan, net of working capital 33,805 13,079 158 33,805 Shareholders' equity 115,110 72,017 60 115,110 Net capital expenditures 13,823 13,437 3 89,686 Weighted average common shares outstanding (thousands): Basic 40,559 37,338 9 38,725 Diluted 41,826 38,355 9 39,897 ------------------------------------------------------------------------ Operating (boe conversion - 6:1 basis) Production: Natural gas (mmcf/day) 31.2 19.7 58 25.3 Oil and liquids (bbls/day) 1,511 1,035 46 1,338 Total oil equivalent (boe/day) 6,703 4,316 55 5,550 Product prices: (3) Natural gas ($/mcf) 6.83 5.64 21 6.61 Oil and liquids ($/bbl) 32.59 26.56 23 34.03 Operating expenses: Natural gas ($/mcf) 0.73 0.60 22 0.69 Oil and liquids ($/bbl) 4.19 4.38 (4) 4.04 Total oil equivalent ($/boe) 4.34 3.79 15 4.13 General & administrative expenses ($/boe) 0.53 0.35 51 0.41 Cash costs ($/boe) 5.66 4.38 29 5.02 Cash flow netback ($/boe) (1) 24.69 20.28 22 24.55 ------------------------------------------------------------------------ December 31, % 2004 2003 Change ------------------------------------------------------------------------ Undeveloped land: Gross acres 345,428 254,169 36 Net acres 310,796 221,389 40 Average working interest 90% 87% 3 Reserves (NI 51 - 101) - January 1, 2005 Proven and probable: Natural gas (bcf) 64.9 39.8 63 Oil and liquids (mbbls) 3,580 3,313 8 Total barrels of oil equivalent (mboe) 14,388 9,949 45 % of Reserves Proven Producing 68% 59% 9 % of Reserves Total Proven 78% 78% - % of Reserves Probable 22% 22% - Net present value of future cash flows before tax ($millions): @ 10% discount rate 209.1 121.6 72 @ 15% discount rate 181.6 107.3 69 Finding and development costs ($/boe): (4) (5) Total proven 16.70 7.82 114 Proven and probable 14.38 6.12 135 Recycle ratio (cash flow net back per boe/finding and development costs per boe): (5) Total proven 1.5 2.6 (42) Proven and probable 1.7 3.3 (48) ------------------------------------------------------------------------ NOTES: (1) Cash flow from operations is used before changes in non-cash working capital to analyze operating performance and leverage. Cash flow does not have a standardized measure prescribed by Canadian Generally Accepted Accounting Principles and therefore may not be comparable with the calculations with similar measures for other companies. (2) Net income and net income per share for 2003 have been restated for the adoption of new accounting standards for asset retirement obligations and stock-based compensation. See note 2 of the interim consolidated financial statements for details of this restatement. (3) Product prices are net of transportation costs. (4) Includes changes in future capital expenditures. (5) Amounts for 2004 are for the year ended December 31, 2004 and the amounts for 2003 are for the period from July 2, 2003 to December 31, 2003. /T/ MESSAGE TO SHAREHOLDERS NuVista Energy Ltd. ("NuVista") is pleased to report to shareholders its financial and operating results for the three months and year ended December 31, 2004. NuVista has now completed eighteen months of operations and the Board of Directors and management are very pleased with the results, accomplishments and corresponding value created for its shareholders. The results of the fourth quarter of 2004 represent the sixth consecutive quarter of continuous profitable growth for NuVista, since its creation on July 2, 2003, through the Plan of Arrangement involving Bonavista Petroleum Ltd. and Bonavista Energy Trust (collectively "Bonavista"). In summary, the significant highlights for NuVista in 2004 include: - Increased production by 56% to the exit level of 7,100 boe per day, consisting of 33.1 mmcf per day of natural gas and 1,575 bbls per day of oil and liquids; - Added 6.5 mmboes of proven and probable reserves replacing production by over three times, at a finding and development cost of $14.38 per boe (including changes in future capital expenditures), resulting in a proven and probable recycle ratio of over 1.7 to 1; - Increased undeveloped land by 40%, to over 310,000 net acres from the 221,000 net acres at the beginning of 2004, further enhancing the drilling prospect inventory in its Core Regions; - Acquired 1,450 kilometers of 2D and 150 square kilometers of 3D seismic to further compliment the prospectivity of NuVista's undeveloped land; - Participated in 81 (64.8 net) wells, with an overall success rate of 86%; - Completed six minor property acquisitions and one strategic private company acquisition, which expanded NuVista's position in its Eastern Core Region and created two new core areas in Alberta at Provost and Pembina. These acquisitions also provide NuVista with an expanded inventory of prospects in three core areas. All three areas continue to experience positive additions in 2005; - Continued focus on controllable cash costs has been a top priority, with recorded cash costs of $5.02 per boe for the year ended December 31, 2004, leaving NuVista in the top decile of its industry peers; and - In October 2004, completed the expansion of the bank facility to $55 million, an increase of 72% since inception, leaving significant financial flexibility to fund future opportunities as they arise. Our total capital expenditures for 2004 were $89.7 million, approximately $5 million less than originally budgeted. This is a direct result of accelerated industry activity resulting in delays in implementing our planned fourth quarter program. The reduced capital expenditures also resulted in NuVista's exit production of 7,100 boe per day for 2004, being slightly lower than the 7,500 boe per day originally budgeted. However, since the end of 2004, NuVista has completed the originally budgeted capital programs in Pembina and Oyen and the results have exceeded our expectations. These programs, in addition to our acquisitions, have resulted in current production levels of 7,900 boe per day, consisting of 34.0 mmcf per day of gas and 2,325 bbls per day of oil and natural gas liquids. NuVista is on track for achieving average production levels of 8,200 to 8,600 boe per day in 2005 with the implementation of our planned $100 million capital program. MANAGEMENT'S DISCUSSION AND ANALYSIS Management's discussion and analysis ("MD&A") of financial conditions and results of operations should be read in conjunction with the interim consolidated financial statements for the three months and year ended December 31, 2004 and NuVista's audited consolidated financial statements and MD&A for the period from July 2, 2003 to December 31, 2003. Barrels of oil equivalent ("boe") have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil. Forward-Looking Statements - Certain information set forth in this document, including management's assessment of NuVista's future plans and operations, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond NuVista's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. 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 that 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. New accounting policies - Effective January 1, 2004, NuVista retroactively adopted and implemented new accounting policies pursuant to requirements of the Canadian Institute of Chartered Accountants ("CICA") Handbook. The new accounting policies adopted included: "Stock-based Compensation and Other Stock-based Payments", "Asset Retirement Obligations" and "Hedge Accounting" and are detailed further in the Notes to the Consolidated Financial Statements. Operating activities - During the fourth quarter of 2004, NuVista participated in 27 wells with an average working interest of 77% and operated 26 of the 27 wells drilled. The success rate of 85% in this drilling program resulted in 16 natural gas wells and seven oil wells. Two projects, one in Pembina and one in Oyen experienced delays in the fourth quarter with only three of the 11 planned wells being drilled and no production being added until the first quarter of 2005. For the year ended December 31, 2004, NuVista participated in a total of 81 wells with an average working interest of 80%, while achieving a success rate of 86%. This program resulted in 55 natural gas wells, 15 oil wells and 11 dry and abandoned wells. To date in 2005, NuVista has participated in 17 wells, with an average working interest of 77% and achieved a 94% success rate resulting in 11 natural gas wells, five oil wells and one dry and abandoned well. NuVista continues to actively drill in each of its three core areas, with over 30 wells planned for the first quarter. Reserves - NuVista's year end 2004 proven reserves amounted to 11.2 mmboe or a 43.3% increase over the closing balance at year end 2003. NuVista's proven and probable reserves climbed by 44.6% to 14.4 mmboes when compared to the equivalent opening balance of 9.9 mmboe at year end 2003. Finding and development costs in 2004, including an adjustment for future capital and after revisions, amounted to $16.70 per barrel of oil equivalent on a proven basis and $14.38 per barrel of oil equivalent on a proven and probable basis. Positive proven reserve revisions totaled 0.9 mmboe, or approximately 12.2% of the opening proven reserve balance. On a proven and probable basis, a slight positive revision of 0.3 mmboe, a 3.1% increase, was experienced when compared to the December 31, 2003 proven probable reserve balance. All of NuVista's reserves as at December 31, 2004, were evaluated independently by Gilbert Laustsen Jung Associates Ltd. Additional reserve disclosure tables, as required under NI 51-101, will be contained in the Annual Information Form that will be filed on SEDAR on or before March 31, 2005. The reserve estimates contained in the following table are working interest reserves before the deduction of royalties: /T/ ------------------------------------------------------------------------ Light and Natural Medium Crude Total Oil Gas Oil Equivalent ------------------------------------------------------------------------ Proven: (bcf) (mbbls) (mboe) December 31, 2003 31.2 2,581 7,782 Exploration and development 14.3 117 2,498 Revisions 2.2 579 947 Acquisitions 10.8 165 1,958 Dispositions - - - Production (9.3) (490) (2,031) ------------------------------------------------------------------------ December 31, 2004 49.2 2,952 11,154 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Proven and Probable: December 31, 2003 39.8 3,309 9,945 Exploration and development 21.1 242 3,753 Revisions - 319 310 Acquisitions 13.3 200 2,411 Dispositions - - - Production (9.3) (490) (2,031) ------------------------------------------------------------------------ December 31, 2004 64.9 3,580 14,388 ------------------------------------------------------------------------ ------------------------------------------------------------------------ /T/ Production - For the fourth quarter of 2004 NuVista's average production was 6,703 boe per day, which was comprised of 31.2 mmcf per day of natural gas and 1,511 bbls per day of oil and liquids and represents a 55% increase over the same period of 2003. A portion of NuVista's fourth quarter natural gas drilling success will be brought on-stream in the first quarter of 2005. NuVista's production results for the twelve months ended December 31, 2004 benefited from continued success in its overall capital programs and consisted of 25.3 mmcf per day of natural gas and 1,338 bbls per day of oil and liquids. Revenues - Revenues for the three months ended December 31, 2004 were $24.6 million, an 88% increase from $13.1 million for the same period of 2003. These revenues were comprised of $20.0 million of natural gas and $4.6 million of oil and liquids for the three months ended December 31, 2004. The increase in revenues for the three months ended December 31, 2004 versus the same period of 2003 results from a 55% increase in production and a 21% increase in commodity prices. The increase in commodity prices, net of transportation costs, is made up of a 21% increase in the natural gas price to $6.83 per mcf from $5.64 per mcf and a 23% increase in the oil and liquids price to $32.59 per bbl from $26.56 per bbl. Revenues for the twelve months ended December 31, 2004 were $79.4 million. Commodity hedging - As part of our financial management strategy, NuVista has adopted a disciplined commodity-hedging program. The purpose of the hedging program is to reduce volatility in the financial results, protect acquisition economics and stabilize cash flow against the unpredictable commodity price environment. At any given period of time our hedging strategy is restricted to a maximum hedge of 50% of forecast production, net of royalties and primarily utilizes costless collars. This strategy limits NuVista's exposure to downturns in commodity prices while allowing for participation in commodity price increases. In the fourth quarter of 2004, our hedging program was virtually neutral and resulted in a net loss of only $5,000 and for the twelve months ended December 31, 2004 a net loss of $735,000 was experienced due to the stronger than expected commodity prices realized throughout the period. A summary of hedging contracts in place as at December 31, 2004 is outlined in note 10 of the Notes to the Consolidated Financial Statements. Royalties - Royalties of $5.4 million for the three months ended December 31, 2004 were 83% higher than the $3.0 million for the same period of 2003. The increase in royalties in the fourth quarter resulted from higher revenues compared to the same period of 2003, largely generated by higher production volumes and higher commodity prices. As a percentage of revenue, the average royalty rate for the fourth quarter of 2004 was 21.9% compared to 22.6% for the comparative period of 2003. Royalties by product for the fourth quarter of 2004 were 22.8% for natural gas and 18.2% for oil and liquids versus 26.6% for natural gas and 16.1% for oil and liquids for the similar period in 2003. The decrease in natural gas royalties results from gas cost allowance credits received during the fourth quarter of 2004. Royalties for the twelve months ended December 31, 2004 were $17.7 million or 22.3% of revenues, 23.8% for natural gas and 16.7% for oil and liquids. Transportation costs - Transportation costs were $496,000 ($0.80 per boe) for the three months ended December 31, 2004 as compared to $326,000 ($0.82 per boe). The 52% increase in transportation costs results from higher production rates in the fourth quarter of 2004 versus 2003. For the year ended December 31, 2004 transportation costs were $1.6 million ($0.80 per boe). Operating - Operating expenses were $2.7 million for the three months ended December 31, 2004 versus $1.5 million for the same period of 2003, a 78% increase. This increase resulted primarily from the higher production volumes and higher per unit natural gas operating costs associated with the private company acquisition. In the fourth quarter of 2004, natural gas operating expenses averaged $0.73 per mcf and oil and liquids operating expenses were $4.19 per bbl as compared to $0.60 per mcf and $4.38 per bbl respectively for the same period of 2003. On a boe basis, operating costs increased 15% to $4.34 per boe in the fourth quarter of 2004 as compared to $3.79 per boe for the same period of 2003, primarily due to higher per unit costs of the newly acquired natural gas assets and increasing cost pressures facing the entire industry. Despite these increases, NuVista still remains in the top decile for oil and natural gas companies in its peer group. Operating expenses for the twelve months ended December 31, 2004 were $8.4 million or $4.13 per boe. By commodity, operating expenses were $0.69 per mcf for natural gas and $4.04 per boe for oil and liquids for the twelve months ended December 31, 2004. Overall, NuVista's cash costs, which include operating, general and administrative, interest expenses and Large Corporations Tax, were $5.66 per boe in the fourth quarter of 2004 compared to $4.38 per boe for the same period of 2003 and $5.02 for the twelve months ended December 31, 2004. This too, places us among the top in our peer group in this performance criteria. General and administrative - General and administrative expenses, net of overhead recoveries for the fourth quarter of 2004, were $326,000 ($0.53 per boe), an increase of 131% over the $141,000 ($0.35 per boe) for the three months ended December 31, 2003, and is directly attributable to the higher production base in NuVista and the allocation of overhead costs and bonuses in accordance with the Technical Services Agreement with Bonavista. General and administrative expenses, net of overhead recoveries were $834,000 ($0.41 per boe) for the twelve months ended December 31, 2004. Included in these expenses is an allocation of $508,000 for the three months ended and $1.3 million for the twelve months ended December 31, 2004, charged pursuant to the Technical Services Agreement with Bonavista. For the three months ended December 31, 2003, $197,000 was allocated to NuVista under the Technical Services Agreement. The Technical Services Agreement, entered into as part of the Plan of Arrangement, has allowed NuVista to initiate and continue with its successful and active capital programs, through the use of Bonavista's personnel in managing its operations and at the same time take advantage of Bonavista's low overhead cost structure. As a result of adopting the new accounting rules, NuVista recorded a stock-based compensation charge of $302,000 for the three months and $1.0 million for the year ended December 31, 2004, in connection with the issuance of both the Class B Performance Shares and stock options. The stock-based non-cash compensation charge to net income for the three months ended December 31, 2003 was $231,000. Interest - Interest expense during the fourth quarter of 2004 was $244,000 ($0.40 per boe) versus $38,000 ($0.10 per boe) for the same period of 2003 because of higher average debt levels, offset by higher production volumes in the fourth quarter of 2004. For the twelve months ended December 31, 2004, financing charges were $574,000 ($0.28 per boe). Currently, NuVista's average borrowing rate is approximately 4.0%. Depreciation, depletion and accretion - Depreciation, depletion and accretion expenses were $6.3 million for the fourth quarter of 2004 compared to $2.9 million for the same period in 2003. The average cost per unit was $10.28 per boe in the fourth quarter of 2004 versus $7.28 per boe for the same period in 2003, due to higher costs of adding reserves, primarily from the acquisition of the private company, in the third quarter as compared to historic levels. Depreciation, depletion and accretion expenses were $19.7 million for the twelve months ended December 31, 2004, or $9.71 per boe. Income and other taxes - For the fourth quarter of 2004, the provision for income and other taxes was $3.1 million for an effective tax rate of 35.2%, as compared to $2.1 million with an effective tax rate of 41.7% for the same period in 2003, resulting primarily from lower statutory income tax rates in 2004. For the twelve months ended December 31, 2004, the provision for income and other taxes was $11.2 million for an effective tax rate of 37.9%. Capital expenditures - Capital expenditures were $13.8 million during the fourth quarter of 2004 consisting of exploration and development spending of $12.8 million and $1.0 million of net acquisitions. For the twelve months ended December 31, 2004, capital expenditures were $89.7 million. Cash flow and net income - In the fourth quarter of 2004, cash flow was $15.2 million ($0.38 per share, basic), an 89% increase over the $8.1 million ($0.22 per share, basic) for the same period in 2003. For the twelve months ended December 31, 2004, NuVista's cash flow was $49.9 million ($1.29 per share, basic). Net income also increased 99% during the fourth quarter of 2004 to $5.7 million ($0.14 per share, basic) from the $2.9 million ($0.08 per share, basic) for the same period in 2003. For the twelve months ended December 31, 2004 net income was $18.3 million ($0.47 per share, basic). All of these increases resulted from stronger commodity prices and increased production rates as NuVista continues to maintain a strong net income to cash flow ratio of 37.6% for the fourth quarter ending December 31, 2004 and 36.7% for the twelve months ended December 31, 2004. Liquidity and capital resources - As at December 31, 2004, total bank debt (net of working capital) was $33.8 million, resulting in a debt to running cash flow ratio of approximately 0.5 to 1. NuVista has approximately $21.2 million of unused bank borrowing capability based on the current line of credit of $55 million, which provides substantial flexibility to fund expanded capital programs into the future. As at February 24, 2005, there were 40,560,049 common shares and 880,503 Class B Performance Shares outstanding. In addition, there were 1,944,312 stock options outstanding, with an average exercise price of $7.29 per share. Quarterly financial information - The following table highlights NuVista's performance for the quarterly reporting periods from September 30, 2003 to December 31, 2004. NuVista commenced operations on July 2, 2003 through the Plan of Arrangement involving Bonavista: /T/ ------------------------------------------------------------------------ 2004 2003 ------------------------------------------------------------------------ December September June March December September 31 30 30 31 31 30 ------------------------------------------------------------------------ (thousands, except per share amounts) (restated) (restated) Production revenue $24,601 $22,020 $16,982 $15,795 $13,061 $12,697 Net income 5,715 4,335 4,540 3,732 2,878 2,746 Net income per share: Basic $ 0.14 $ 0.11 $ 0.12 $ 0.10 $ 0.08 $ 0.08 Diluted 0.14 0.11 0.12 0.10 0.08 0.07 ------------------------------------------------------------------------ /T/ BUSINESS RISKS AND OUTLOOK NuVista's management remains committed to the same principles and disciplined growth strategy that has led to it's considerable success over the first year and a half and the tremendous success of Bonavista as a high growth exploration and production company. In the first quarter of 2005, NuVista increased its employee base with the establishment of separate technical teams in each of its Core Regions. These personnel were a combination of Bonavista employees who had previously worked on the development of NuVista's Core Regions as well as several new hires. With the undeveloped land base now exceeding 310,000 net acres, an increased drilling inventory, coupled with our strong balance sheet, NuVista is well positioned to continue posting strong operational and financial results for the first quarter of 2005 and beyond. NuVista will continue to focus on its core strategy of applying the expertise of its own technical staff to its operating regions in a prudent and disciplined manner, through both the drill bit and strategic acquisitions. The execution of these strategies will enable NuVista to continue to grow its production, cash flow and net income consistently and profitably. Furthermore, our solid financial position will enable us to execute our 2005 capital program and remain positioned to pursue additional strategic opportunities as they arise. We remain unwavering in our commitment to enhance shareholder value over the long-term by accessing the broad depth and expertise of our team in a diligent and prudent manner. For 2005 NuVista's Board of Directors has approved a capital program of $100 million, which is expected to result in production averaging between 8,200 and 8,600 boe per day for the year. Using commodity price estimates of $6.53 per gj at AECO for natural gas and US $47.75 per bbl WTI for oil, this production forecast should result in cash flow in the range of $70 million to $75 million ($1.70 per share to $1.85 per share) for 2005. /T/ Consolidated Balance Sheets December 31, 2004 2003 --------------------------------------------------------------------- (thousands) (restated) Assets Accounts receivable $ 12,071 $ 6,251 Oil and natural gas properties and equipment (notes 3, 4 and 5) 152,021 79,959 Goodwill (note 3) 9,439 - Future tax asset (note 9) - 8,164 --------------------------------------------------------------------- $ 173,531 $ 94,374 --------------------------------------------------------------------- --------------------------------------------------------------------- Liabilities and Shareholders' Equity Accounts payable and accrued liabilities $ 17,524 $ 12,402 Bank loan (note 7) - 6,928 --------------------------------------------------------------------- 17,524 19,330 Bank loan (note 7) 28,352 - Asset retirement obligations (note 6) 5,990 3,027 Future income taxes (note 9) 6,555 - Shareholders' equity: Share capital (note 8) 89,876 65,932 Contributed surplus (note 8) 1,288 461 Retained earnings 23,946 5,624 --------------------------------------------------------------------- 115,110 72,017 --------------------------------------------------------------------- $ 173,531 $ 94,374 --------------------------------------------------------------------- --------------------------------------------------------------------- Consolidated Statement of Operations and Retained Earnings Three Months Year Period(1) ended ended ended December 31, December 31, December 31, 2004 2003 2004 2003 ------------------------------------------------------------------------ (thousands, except per (restated) (restated) share amounts) Revenues: Production $ 24,601 $ 13,061 $ 79,398 $ 25,758 Royalties, net (5,391) (2,950) (17,701) (6,079) Transportation costs (496) (326) (1,630) (624) ------------------------------------------------------------------------ 18,714 9,785 60,067 19,055 ------------------------------------------------------------------------ Expenses: Operating 2,677 1,505 8,392 2,792 General and administrative 326 141 834 268 Interest 244 38 574 282 Stock-based compensation 302 231 1,035 461 Depreciation, depletion and accretion 6,339 2,936 19,727 5,963 ------------------------------------------------------------------------ 9,888 4,851 30,562 9,766 ------------------------------------------------------------------------ Income before income and other taxes 8,826 4,934 29,505 9,289 Income and other taxes (note 9) 3,111 2,056 11,183 3,665 ------------------------------------------------------------------------ Net income 5,715 2,878 18,322 5,624 Retained earnings, beginning of period 18,231 2,746 5,668 - Retroactive application of changes in accounting policies (note 2) - - (44) - ------------------------------------------------------------------------ Retained earnings, end of period $ 23,946 $ 5,624 $ 23,946 $ 5,624 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Net income per share - basic $ 0.14 $ 0.08 $ 0.47 $ 0.15 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Net income per share - diluted $ 0.14 $ 0.08 $ 0.46 $ 0.15 ------------------------------------------------------------------------ ------------------------------------------------------------------------ (1) Period is from July 2, 2003 to December 31, 2003. Consolidated Statement of Cash Flows (thousands) Three Months Year Period(1) ended ended ended December 31, December 31, December 31, 2004 2003 2004 2003 ------------------------------------------------------------------------ (restated) (restated) Cash provided by (used in): Operating Activities: Net income $ 5,715 $ 2,878 $ 18,322 $ 5,624 Items not requiring cash from operations: Depreciation, depletion and accretion 6,339 2,936 19,727 5,963 Stock-based compensation 302 231 1,035 461 Future income taxes 2,866 2,007 10,787 3,558 ------------------------------------------------------------------------ Funds flow from operations 15,222 8,052 49,871 15,606 Asset retirement expenditures (112) (109) (131) (110) Decrease (Increase) in non-cash working capital items (366) 134 (6,801) 106 ------------------------------------------------------------------------ 14,744 8,077 42,939 15,602 ------------------------------------------------------------------------ Financing Activities: Issue (Repurchase) of share capital 13 (48) (24) 17,478 Increase (Decrease) in bank loan (4,952) 2,940 21,424 (18,163) ------------------------------------------------------------------------ (4,939) 2,892 21,400 (685) ------------------------------------------------------------------------ Investing Activities: Business acquisition (note 3) - - (22,882) - Oil and natural gas properties and equipment additions (13,823) (13,437) (45,368) (20,960) Proceeds on disposal of oil and natural gas properties and equipment - - 102 - Decrease in non-cash working capital items 4,018 2,468 3,809 6,043 ------------------------------------------------------------------------ (9,805) (10,969) (64,339) (14,917) ------------------------------------------------------------------------ Decrease in cash - - - - Cash, beginning of period - - - - ------------------------------------------------------------------------ Cash, end of period $ - $ - $ - $ - ------------------------------------------------------------------------ ------------------------------------------------------------------------ (1) Period is from July 2, 2003 to December 31, 2003. /T/ NUVISTA ENERGY LTD. NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS Year ended December 31, 2004. 1. Significant accounting policies: NuVista Energy Ltd. ("NuVista") was established with an effective date of July 2, 2003 under a Plan of Arrangement entered into by Bonavista Energy Trust (the "Trust"), Bonavista Petroleum Ltd. ("Bonavista") and NuVista. Under the Plan of Arrangement, various assets of Bonavista comprising of certain producing and exploration assets were transferred to NuVista. The comparative consolidated financial statements reflect the results of operations for the period from July 2, 2003 to December 31, 2003. The amounts recorded for depreciation and depletion of oil and natural gas properties and equipment and the provision for asset retirement obligations are based on estimates. The ceiling test is based on estimates of proved reserves, production rates, oil and natural gas prices, future costs and other relevant assumptions. By their nature, these estimates are subject to measurement uncertainty and the effect on the financial statements of changes in such estimates in future periods could be significant. (a) Oil and natural gas properties and equipment: Oil and natural gas properties and equipment are evaluated in each reporting period to determine that the carrying amount in a cost centre is recoverable and does not exceed the fair value of the properties in the cost centre. The carrying amounts are assessed to be recoverable when the sum of the undiscounted cash flows expected from the production of proved reserves, the lower of cost and market of unproved properties and the cost of major development projects exceeds the carrying amount of the cost centre. When the carrying amount is not assessed to be recoverable, an impairment loss is recognized to the extent that the carrying amount of the cost centre exceeds the sum of the discounted cash flows expected from the production of proved and probable reserves, the lower of cost and market of unproved properties and the cost of major development projects of the cost centre. The cash flows are estimated using expected future product prices and costs, and are discounted using a risk-free interest rate. Effective January 1, 2004, NuVista adopted the new accounting standard relating to full cost accounting. The adoption of this new policy on January 1, 2004 resulted in no write-down to the carrying value of oil and natural gas assets. Prior to January 1, 2004 the ceiling test amount was the sum of the undiscounted cash flows expected from the production of proved reserves, the lower of cost or market of unproved properties and the cost of major development projects less estimated future costs for administration, financing, site restoration and income taxes. The cash flows were estimated using period end prices and costs. (b) Joint venture accounting: A portion of NuVista's oil and natural gas operations is conducted jointly with others. Accordingly, the consolidated financial statements reflect only NuVista's proportionate interest in such activities. (c) Goodwill: Goodwill is tested for impairment on an annual basis in the fourth quarter. If indications of impairment are present, a loss would be charged to earnings for the amount that the carrying value of goodwill exceeds its fair value. (d) Asset retirement obligation: NuVista records a liability for the fair value of legal obligations associated with the retirement of long-lived tangible assets in the period in which they are incurred, normally when the asset is purchased or developed. On recognition of the liability there is a corresponding increase in the carrying amount of the related asset known as the asset retirement cost, which is depleted on a unit-of-production basis over the life of the reserves. The liability is adjusted each reporting period to reflect the passage of time, with the accretion charged to earnings, and for revisions to the estimated future cash flows. Actual costs incurred upon settlement of the obligations are charged against the liability. The impact of the adoption of the new standard is described in note 2. (e) Revenue recognition: Revenues from the sale of petroleum and natural gas are recorded when title passes to an external party. (f) Financial instruments: (i) Hedge relationships: From time to time, NuVista may use swap agreements or other financial instruments to hedge its exposure to fluctuations in oil and natural gas prices. Gains and losses arising from these swap arrangements are reported as adjustments to the related revenue account over the term of the financial instrument. Financial instruments are not used for speculative purposes. The carrying values of NuVista's monetary assets and liabilities approximate their fair values. The CICA issued Accounting Guideline 13 - Hedging Relationships, which deals with the identification, designation, documentation and effectiveness of hedging relationships for the purpose of applying hedge accounting. NuVista formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivatives that are used in the hedging transactions are highly effective in offsetting changes in fair value or cash flows of the hedged item. These derivative contracts, accounted for as hedges, are not recognized on the balance sheet. Realized gains and losses on these contracts are recognized in petroleum and natural gas revenue and cash flows in the same period in which the revenues associated with the hedged transaction are recognized. Premiums paid or received are deferred and amortized to earnings over the term of the contract. (ii) Credit risk: NuVista accounts receivable are with customers and joint venture partners in the petroleum and natural gas business and are subject to normal credit risks. Concentration of credit risk is mitigated by marketing production to numerous purchasers under normal industry sale and payment terms. NuVista routinely assesses the financial strength of its customers. NuVista may be exposed to certain losses in the event of non-performance by counterparties to commodity price contracts. NuVista mitigates this risk by entering into transactions with highly rated major financial institutions. (g) Stock-based compensation: NuVista has equity incentive plans, which are described in note 8. These stock-based compensation plans for employees do not involve the direct award of stock, or call for the settlement in cash or other assets. Upon the exercise of stock options, consideration received together with the amount previously recognized in contributed surplus is recorded as an increase to share capital. Compensation costs are recognized in the financial statements for the performance shares. NuVista uses the fair value method for valuing stock option grants on or after January 1, 2002. Under this method, the compensation cost attributable to all share options granted is measured at fair value at the grant date and expensed over the vesting period with a corresponding increase to contributed surplus. (h) Income taxes: NuVista follows the liability method of accounting for future income taxes. (i) Per share amounts: Diluted per share amounts reflect the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted to common shares. The treasury stock method is used to determine the dilutive effect of stock options and other dilutive instruments. 2. Changes in accounting policies: a) Asset retirement obligations: On January 1, 2004, NuVista adopted the new accounting policies on Asset Retirement Obligations. This change in accounting policy has been applied retroactively with the restatement of the prior period presented for comparative purposes. Previously, NuVista recognized a provision for future site reclamation and abandonment costs calculated on the unit-of-production method over the life of the oil and natural gas properties based on total estimated proved reserves and the estimated future liability. As a result of this change in accounting policy, net income increased by $313,000 ($481,000, net of a future tax expense of $168,000) or $0.01 per share on a basic and diluted basis for the period from inception on July 2, 2003 to December 31, 2003. The Asset Retirement Obligations increased by $1.7 million, oil and natural gas properties and equipment, net of accumulated depreciation and depletion increased by $3.2 million, future tax asset decreased by $509,000, share capital increased by $642,000 and retained earnings increased by $313,000 as at December 31, 2003. b) Stock-based compensation: NuVista has retroactively adopted the new accounting standard for stock-based compensation, which requires the use of the fair value method for valuing stock option grants on or after January 1, 2002. Under this method, the compensation cost attributable to all share options granted is measured at fair value at the grant date and expensed over the vesting period with a corresponding increase to contributed surplus. Upon the exercise of the stock options, consideration received together with the amount previously recognized in contributed surplus is recorded as an increase to share capital. NuVista has incorporated an estimated forfeiture rate of 10% for stock options. As a result of adopting the new accounting standard, net income decreased by $357,000, or $0.01 per share on a basic and diluted basis for the period from July 2, 2003 to December 31, 2003. The completion of this change in accounting policy resulted in an increase of $357,000 to a contributed surplus and a decrease of $357,000 to retained earnings as at December 31, 2003. 3. Acquisition of Grid Resources Ltd.: On July 29, 2004, NuVista acquired all of the issued and outstanding shares of Grid Resources Ltd. ("Grid"), a private oil and natural gas company. NuVista purchased Grid through a series of transactions, which included the disposition of certain non-core assets to a private company and the residual assets being acquired in an existing partnership, owned approximately 76% by NuVista and 24% by Bonavista Petroleum. The acquisition has been accounted for using the purchase method, with results of operations included from the date of acquisition. The purchase equation, which reflects the NuVista portion of the acquisition, is as follows: /T/ ------------------------------------------------------------------------ Amount ------------------------------------------------------------------------ (thousands) Net assets acquired: Oil and natural gas properties $ 44,420 Goodwill 9,439 Natural gas hedge liability (915) Asset retirement obligations (991) Future income taxes (3,931) ------------------------------------------------------------------------ Net assets acquired $ 48,022 ------------------------------------------------------------------------ ------------------------------------------------------------------------ (thousands) Purchase consideration: Issue of common shares $ 23,760 Cash and assumption of bank loan 22,882 Assumption of working capital deficiency 1,380 ------------------------------------------------------------------------ Total purchase consideration $ 48,022 ------------------------------------------------------------------------ ------------------------------------------------------------------------ /T/ 4. Formation and related party transactions: Under the Plan of Arrangement in July 2003, Bonavista transferred to NuVista certain assets, being certain producing and exploratory oil and natural gas properties in Bonavista's Eastern Core Region, and an allocation of its bank loan. The producing oil and natural gas properties were transferred into a general partnership that was 70% owned by NuVista and 30% owned by Bonavista. As this was a related party transaction, assets and liabilities were transferred at their book value. Details are as follows: /T/ ------------------------------------------------------------------------ Amount ------------------------------------------------------------------------ (thousands) (restated) Oil and natural gas assets and equipment $ 64,671 Future income tax asset 11,410 ------------------------------------------------------------------------ Total assets transferred 76,081 Bank loan (29,103) Asset retirement obligations (2,846) ------------------------------------------------------------------------ Net assets received and common shares issued $ 44,132 ------------------------------------------------------------------------ ------------------------------------------------------------------------ /T/ Under the Plan of Arrangement, NuVista entered into a Technical Services Agreement with Bonavista. Under this agreement, Bonavista receives payment for certain technical and administrative services provided by it to NuVista, on a cost recovery basis. Pursuant to the Technical Services Agreement, there were fees of $1,348,000 charged relating to general and administrative activities and $750,000 of fees were charged relating to capital expenditure activities for the year ended December 31, 2004 (period from July 2, 2003 to December 31, 2003 - $372,000 and $317,000, respectively). As at December 31, 2004, amounts payable to Bonavista were $3.5 million (2003 - $1.7 million). /T/ 5. Oil and natural gas properties and equipment: ------------------------------------------------------------------------ Accumulated depreciation Net book December 31, 2004 Cost and depletion value ------------------------------------------------------------------------ (thousands) Oil and natural gas properties $ 145,616 $ 23,170 $ 122,446 Facilities and well equipment 31,714 2,139 29,575 ------------------------------------------------------------------------ $ 177,330 $ 25,309 $ 152,021 ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ Accumulated depreciation Net book December 31, 2003 Cost and depletion value ------------------------------------------------------------------------ (thousands) (restated) Oil and natural gas properties $ 68,359 $ 5,363 $ 62,996 Facilities and well equipment 17,478 515 16,963 ------------------------------------------------------------------------ $ 85,837 $ 5,878 $ 79,959 ------------------------------------------------------------------------ ------------------------------------------------------------------------ /T/ Unproved property costs of $15.9 million were excluded from the depreciation and depletion calculation for the year ended December 31, 2004 (period from July 2 to December 31, 2003 - $10.7 million). NuVista has performed the ceiling test under AcG-16 as of December 31, 2004. The impairment test was calculated using the benchmark reference prices at January 1 for the years 2005 to 2009 and adjusted for commodity differentials specific to NuVista: /T/ Benchmark Reference Price Forecasts: Year ------------------------------------------------------------------------ 2005 2006 2007 2008 2009 ------------------------------------------------------------------------ WTI ($U.S./bbl) 42.00 40.00 38.00 36.00 34.00 ------------------------------------------------------------------------ AECO ($Cdn/mcf) 6.60 6.35 6.15 6.00 6.00 ------------------------------------------------------------------------ /T/ 6. Asset retirement obligations: NuVista's asset retirement obligations result from net ownership interests in oil and natural gas assets including well sites, gathering systems and processing facilities. NuVista estimates the total undiscounted amount of cash flows required to settle its asset retirement obligations is approximately $31.0 million, which will be incurred over the next 51 years. The majority of the costs will be incurred between 2010 and 2034. A credit-adjusted risk-free rate of 8% was used to calculate the fair value of the asset retirement obligations. A reconciliation of the asset retirement obligations is provided below: /T/ ------------------------------------------------------------------------ Period from Year ended July 2 to December 31, 2004 December 31, 2003 ------------------------------------------------------------------------ (thousands) Balance, beginning of period $ 3,027 $ 2,846 Accretion expense 295 85 Liabilities incurred 1,808 206 Liabilities acquired 991 - Liabilities settled (131) (110) ------------------------------------------------------------------------ Balance, end of period $ 5,990 $ 3,027 ------------------------------------------------------------------------ ------------------------------------------------------------------------ /T/ 7. Bank loan: In October 2004, NuVista and its lenders agreed to amend the Company's revolving bank loan facility to increase the maximum borrowing to $55 million. The bank loan facility provides that borrowing may be made by prime loans, bankers' acceptances and/or US libor advances. These advances bear interest at the bank's prime rate and/or at money market rates plus a stamping fee. The loan is secured by a first floating charge debenture, general assignment of book debts and NuVista's oil and natural gas properties and equipment. The facility is subject to an annual review by the lenders, at which time a lender can request conversion to a term loan for one year. Under the term period, no principal payments would be required until June 30, 2006 or later, after the annual review. As such, this loan facility is classified as a long-term liability. Cash paid for the interest expense was $248,000 for the three months and $560,000 for the year ended December 31, 2004 (for the period from July 2 to December 31, 2003 - $282,000). 8. Share capital: (a) Authorized: Unlimited number of voting Common Shares and 1,200,000 Class B Performance Shares. (b) Issued: Prior to the Plan of Arrangement, NuVista completed the private placement of 2,000,000 Common Shares and 1,200,000 Class B Performance Shares for gross proceeds of $4,012,000. /T/ (i) Common Shares ------------------------------------------------------------------------ Number Amount ------------------------------------------------------------------------ (thousands) Outstanding as at July 2, 2003 2,000 $ 4,000 Issued pursuant to the Plan of Arrangement (note 4) 32,839 44,132 Issued for cash 2,500 18,375 Reacquired and cancelled (1) (2) Costs associated with shares issued, net of future tax benefit - (585) ------------------------------------------------------------------------ Outstanding as at December 31, 2003 (restated) 37,338 65,920 Issued on acquisition of Grid Resources Ltd. (note 3) 3,000 23,760 Conversion of Class B Performance Shares 223 3 Stock-based compensation - 208 Exercise of stock options 4 25 Reacquired and cancelled (6) (15) Cost associated with shares issued, net of future tax benefit - (34) ------------------------------------------------------------------------ Outstanding as at December 31, 2004 40,559 $ 89,867 ------------------------------------------------------------------------ ------------------------------------------------------------------------ (ii) Contributed Surplus ------------------------------------------------------------------------ Amount ------------------------------------------------------------------------ (thousands) Balance as at July 2, 2003 - Stock-based compensation 461 ------------------------------------------------------------------------ Balance as at December 31, 2003 (restated) 461 Stock-based compensation 1,035 Conversion of Class B Performance shares (208) ------------------------------------------------------------------------ Balance as at December 31, 2004 $ 1,288 ------------------------------------------------------------------------ ------------------------------------------------------------------------ /T/ (iii) Class B Performance Shares Each Class B Performance Share was issued for a price of $0.01 per share and is convertible into the fraction of a Common Share equal to the closing trading price of the Common Shares on the Toronto Stock Exchange on the day prior to such conversion less $2.00, if positive, divided by the Common Share closing price. The Class B Performance Shares will automatically convert into Common Shares as to 25% of the Class B Performance Shares outstanding on a pro-rata basis from holders on each of July 1, 2004, 2005, 2006 and 2007. If the NuVista Closing Price less $2.00 is not positive on any conversion date, NuVista will, subject to applicable law, redeem the Class B Performance Shares that would have otherwise been converted at the redemption price of $0.01 per share. The fair value of each Class B Performance Share was determined, at date of issuance, using the Black-Scholes model with the variables described in note 8(e). This amount is amortized over the life of the Class B Performance Shares and is included in stock-based compensation expense. Upon conversion or exercise the related charge to stock-based compensation is re-classed into equity. /T/ ------------------------------------------------------------------------ Number Amount ------------------------------------------------------------------------ (thousands) Outstanding as at July 2, 2003 1,200 $ 12 Reacquired and cancelled (4) - ------------------------------------------------------------------------ Outstanding as at December 31, 2003 1,196 12 Converted to Common Shares (297) (3) Reacquired and cancelled (15) - ------------------------------------------------------------------------ Outstanding as at December 31, 2004 884 $ 9 ------------------------------------------------------------------------ ------------------------------------------------------------------------ /T/ (c) Per share amounts: During the year ended December 31, 2004, there were 38,725,401 (period from July 2, 2003 to December 31, 2003 - 36,359,841) weighted average shares outstanding. On a diluted basis, there were 39,897,355 (period from July 2 to December 31, 2003 - 37,336,785) weighted average shares outstanding after giving effect for dilutive stock options. (d) Stock options: NuVista has established a stock option plan whereby officers, directors, employees and service providers may be granted options to purchase Common Shares. Options granted vest at the rate of 25 percent per year and expire two years after the date of vesting to a maximum term of six years. The total stock options outstanding plus the Class B Performance Shares cannot exceed 10% of the outstanding Common Shares. The summary of stock options transactions for the year ended December 31, 2004 and for the period from July 2, 2003 to December 31, 2003 is as follows: /T/ ------------------------------------------------------------------------ 2004 2003 ------------------------------------------------------------------------ Weighted Weighted average average exercise exercise Number price Number price ------------------------------------------------------------------------ Outstanding as at beginning of period 1,365,300 $ 6.35 - - Granted 381,100 $ 8.49 1,369,800 $ 6.35 Exercised (4,013) $ 6.36 - - Cancelled (32,350) $ 6.30 (4,500) $ 6.30 ------------------------------------------------------------------------ Outstanding as at December 31 1,710,037 $ 6.82 1,365,300 $ 6.35 ------------------------------------------------------------------------ ------------------------------------------------------------------------ The following table summarizes stock options outstanding and exercisable under the plan at December 31, 2004: ------------------------------------------------------------------------ Options outstanding Options exercisable ------------------------------------------------------------------------ Weighted average Weighted Weighted Range of Number remaining average Number average exercise outstanding contractual exercise exercisable exercise prices at year-end life price at year-end price ------------------------------------------------------------------------ $ 6.30 to $ 7.42 1,337,037 4.5 $ 6.35 345,812 $ 6.35 $ 7.70 to $ 9.91 373,000 5.0 $ 8.49 1,000 $ 7.88 ---------- --------- 1,710,037 $ 6.82 346,812 $ 6.35 ------------------------------------------------------------------------ ------------------------------------------------------------------------ /T/ (e) Stock-based compensation: The Company uses the fair value based method for the determination of the stock-based compensation costs. The fair value of each option granted was estimated on the date of grant using the Black-Scholes option pricing model. In the pricing model, the risk free interest rate was 3.5%; volatility of 25%; and an expected life of 4.5 years. 9. Income taxes: The provision for income tax differs from the result of which would have been obtained by applying the combined Federal and Provincial income tax rate to the income before taxes. This difference results from the following items: /T/ ----------------------------------------------------------------------- Three Months ended Year ended December 31, 2004 December 31, 2004 ----------------------------------------------------------------------- (thousands) Expected tax expense at 39% $ 3,442 $ 11,507 Non deductible crown payments, net 1,123 3,753 Resource allowance (1,281) (4,197) Effect of change in tax rate (536) (680) Other 118 404 Capital taxes 245 396 ----------------------------------------------------------------------- Provision for income taxes $ 3,111 $ 11,183 ----------------------------------------------------------------------- The provision for income taxes consists of: Current $ 245 $ 396 Future 2,866 10,787 ----------------------------------------------------------------------- Provision for income taxes $ 3,111 $ 11,183 ----------------------------------------------------------------------- ----------------------------------------------------------------------- The significant components of the future income taxes (asset) as at December 31, 2004 and 2003 are: ----------------------------------------------------------------------- 2004 2003 ----------------------------------------------------------------------- (thousands) (restated) Oil and natural gas properties $ 8,196 $ (5,948) Facilities and well equipment 789 (1,073) Asset retirement obligations (2,157) (1,047) Share issue costs (198) (239) Other (75) 143 ----------------------------------------------------------------------- Future income taxes (asset) $ 6,555 $ (8,164) ----------------------------------------------------------------------- ----------------------------------------------------------------------- Cash income taxes paid for the year ended December 31, 2004 was $125,000 (for the period from July 2 to December 31, 2003 - Nil). /T/ 10. Hedging activities: a) Financial instruments: As at December 31, 2004, NuVista has hedged by way of costless collars the following crude oil: /T/ ------------------------------------------------------------------------ Average Price WTI (U.S. $/bbl) Term ------------------------------------------------------------------------ 250 bbls per day $ 40.00-$ 65.00 January 1, 2005 - March 31, 2005 250 bbls per day $ 40.00-$ 60.00 April 1, 2005 - June 30, 2005 250 bbls per day $ 40.00-$ 55.00 July 1, 2005 - October 31, 2005 250 bbls per day $ 35.00-$ 57.25 October 1, 2005 - December 31, 2005 ------------------------------------------------------------------------ /T/ As at December 31, 2004, the market value of these financial instruments was approximately $171,000. b) Physical purchase contracts: As at December 31, 2004, NuVista has entered into direct sale costless collars to sell natural gas as follows: /T/ ------------------------------------------------------------------------ Average Price AECO (Cdn $/gj) Term ------------------------------------------------------------------------ 8,300 gj's per day $ 5.78-$ 9.75 January 1, 2005 - March 31, 2005 10,000 gj's per day $ 6.13-$ 9.06 April 1, 2005 - October 31, 2005 ------------------------------------------------------------------------ /T/ INVESTOR INFORMATION 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". Corporate information provided herein contains forward-looking information. The reader is cautioned that assumptions used in the preparation of such information, which are considered reasonable by NuVista at the time of preparation, may be proven to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. There is no representation by NuVista that actual results achieved during the forecast period will be the same in whole or in part as those forecast. -30-
NuVista Energy Ltd.
Keith A. MacPhail
Chairman
(403) 213-4315
or
NuVista Energy Ltd.
Alex G. Verge
President and Chief Executive Officer
(403) 538-8501
or
NuVista Energy Ltd.
Glenn A. Hamilton
Vice President and Chief Financial Officer
(403) 213-4302
