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NuVista Energy Ltd. Announces $47.4 Million Acquisition

Jul 21, 2004 - 08:00 ET

CALGARY, ALBERTA--(CCNMatthews - July 21, 2004) - NuVista Energy 
Ltd. ("NuVista") is pleased to announce it has entered into an 
agreement whereby, it will acquire all 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 consists of 3,000,000 common 
shares of NuVista, plus $23.7 million in cash and assumption of 
debt. The acquisition is expected to close on or about July 29, 
2004, with completion of the transaction subject to customary 
closing conditions and receipt of regulatory approvals. The total 
purchase price at closing is estimated to be approximately $47.4 
million, subject to certain final adjustments. Holders of 83% of 
the outstanding shares (on a fully diluted basis) have entered 
into "hard" lockup agreements, pursuant to which they have agreed 
to sell their shares to NuVista. 

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 
desire 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 will increase 
NuVista's production by 25% to approximately 6,350 boe/d, proven 
reserves by 13.5 bcf of natural gas and 174 mbbls of oil and 
proven and probable reserves by 19.2 bcf of natural gas and 379 
mbbls of oil. These reserve additions have been evaluated 
internally. The acquisition also includes approximately 45,000 
net acres of highly prospective undeveloped land. 

The acquisition provides the following benefits to NuVista: 

- Accretive to NuVista's cash flow, reserves, production and net 
asset value, all on a per share basis; 

- Acquisition costs, net of undeveloped land value, are $34,200 
per boe/d of production, $19.90 per boe of proved reserves and 
$16.25 per boe of proved plus probable reserves, including all 
future capital required to develop and bring reserves on stream; 

- Provides NuVista with an extension to its Eastern Region and a 
new core area, both of which are considered to be natural gas 
prone, multi zone areas; 

- Both properties are mostly operated with high working 

- The infrastructure within the Provost area provides NuVista 
with a strategic, low cost advantage with respect to ongoing 
development of new and existing pools; 

- NuVista has identified over 50 opportunities, which includes; 
new drills, recompletions re-entries and tie-ins; 

- Approximately 45,000 net acres of undeveloped high working 
interest land, independently evaluated at $3.7 million, based 
primarily upon current prices paid at land sales for properties 
in the immediate vicinity; and 

- This acquisition will result in an expansion to NuVista's 2004 
capital program to $95 million. This expansion will enable 
NuVista to increase 2004 exit production to 7,500 boe/d from 
6,700 boe/d, while maintaining its focus on natural gas. 

NuVista's acquisition strategy is focused on establishing core 
areas in natural gas prone, multizone regions, where exploitation 
can be carried out with medium depth drilling. Ideally, new focus 
areas have a high working interest and operated production base, 
a prospective undeveloped land position, infrastructure and 
access to facilities. These attributes are included in this 

NuVista plans upon utilizing concepts developed in our Eastern 
Alberta Core Region with respect to the integration of 3D seismic 
and geology to develop and exploit opportunities within Provost, 
as a logical northwestern extension to NuVista's Eastern Alberta 
Core Region. 

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 

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. 


NuVista Energy Ltd.
1100, 321 - 6th Avenue S.W
Calgary, AB T2P 3H3
Ph: (403) 514-7300




NuVista Energy Ltd.
Keith A. MacPhail
(403) 213-4315


NuVista Energy Ltd.
Alex G. Verge
President and Chief Executive Officer
(403) 213-4306


NuVista Energy Ltd.
Glenn A. Hamilton
Vice President and Chief Financial Officer
(403) 213-4302