NuVista Energy Ltd. Announces the Completion of the $47.4 Million Acquisition
CALGARY, ALBERTA--(CCNMatthews - July 29, 2004) - NuVista Energy
Ltd. ("NuVista") is pleased to announce that it has completed the
previously reported acquisition of the outstanding shares of a
private company, and through a series of transactions will hold
certain natural gas producing properties primarily concentrated
north of NuVista's Eastern Alberta Core Region. The consideration
for this acquisition consisted of 3,000,000 common shares of
NuVista, plus $23.7 million in cash and assumption of debt. The
total purchase price at closing was approximately $47.4 million.
The acquired assets are 92% natural gas weighted, with 77% of the
production in the Provost region and 23% of the production in the
Pembina area. The Provost property is a natural extension to
NuVista's Eastern Alberta Core Region and is consistent with our
strategy to extend similar play types in a northerly direction,
while the Pembina area represents a new core area for NuVista.
Current production from the assets is approximately 1,280 barrels
of oil equivalent per day (boe/d), including 7.1 million cubic
feet per day (mmcf/d) of natural gas and 100 barrels per day
(bbls/d) of oil and liquids. This transaction increases NuVista's
production by 25% to approximately 6,350 boe/d. The acquisition
also includes approximately 45,000 net acres of highly
prospective undeveloped land.
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".
Information provided herein contains forward-looking statements.
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.
Boe may be misleading particularly if used in isolation. A boe
conversion ratio of 6 mcf : 1 bbl is based on an energy
equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead.
/T/
NuVista Energy Ltd.
1100, 321 - 6th Avenue S.W
Calgary, AB T2P 3H3
Ph: (403) 514-7300
/T/
-30-NuVista Energy Ltd.
Keith A. MacPhail
Chairman
(403) 213-4315
or
NuVista Energy Ltd.
Alex G. Verge
President and Chief Executive Officer
(403) 213-4306
or
NuVista Energy Ltd.
Glenn A. Hamilton
Vice President and Chief Financial Officer
(403) 213-4302
Email: inv_rel@nuvistaenergy.com
Website: www.nuvistaenergy.com
