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FOR: NUVISTA ENERGY LTD.

TSX SYMBOL: NVA - |  View Quote |  View Chart |  View Financials | 

NuVista Energy Ltd. Announces Completion of Subscription Receipt Financings

Jul 7, 2009 - 09:39 ET

CALGARY, ALBERTA--(Marketwire - July 7, 2009) - 

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

NuVista Energy Ltd. (TSX:NVA) ("NuVista") is pleased to announce that it has completed its previously announced bought deal and private placement subscription receipt financings for aggregate gross proceeds of $99 million.

NuVista through a syndicate of underwriters led by Peters & Co. Limited and including CIBC World Markets Inc., FirstEnergy Capital Corp., TD Securities Inc., BMO Capital Markets, RBC Capital Markets, Scotia Capital Inc., Cormark Securities Inc., Macquarie Capital Markets Canada Ltd., Genuity Capital Markets, GMP Securities L.P., and National Bank Financial Inc., issued 7,500,000 subscription receipts at a price of $11.00 per subscription receipt, on a bought deal basis, for gross proceeds of $82.5 million. In addition, NuVista issued 1,500,000 subscription receipts at a price of $11.00 per subscription receipt, by way of a private placement to Ontario Teachers' Pension Plan, for gross proceeds of $16.5 million.

The gross proceeds of the subscription receipt financings will be held in escrow pending the completion of the previously announced acquisition of properties in the Martin Creek area of northeast British Columbia and northwest Alberta for a purchase price of $176 million, prior to customary closing adjustments (the "Acquisition"). If the Acquisition is completed on or before August 7, 2009, the proceeds will be released to NuVista and each subscription receipt will be exchanged for one common share of NuVista for no additional consideration or further action. If the Acquisition is not completed on or before August 7, 2009 or the Acquisition is terminated at an earlier time, holders of subscription receipts will receive a cash payment equal to the offering price of the subscription receipts together with any interest that was earned thereon during the term of escrow. The closing of the Acquisition is expected to occur on July 24, 2009.

The subscription receipts issued through the bought deal financing will be listed for trading on the TSX under the symbol NVA.R on July 7, 2009.

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".

This news release is not an offer to sell or a solicitation of offers to by the Subscription Receipts in the United States. The Subscription Receipts have not been and will not be registered under the United States Securities Act and may not be offered or sold in the United States except in transactions exempt from such registration.

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 the closing of the Acquisition and the expected timing of such closing.

The forward-looking statements and information in this press release are based on certain key expectations and assumptions made by NuVista, including completion of the Acquisition on the timing planned. 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.

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 risk that some conditions to the closing of the acquisition are not satisfied.

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 undertake 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. 

FOR FURTHER INFORMATION PLEASE CONTACT:

NuVista Energy Ltd.
Alex G. Verge
President and Chief Executive Officer
(403) 538-8501

or

NuVista Energy Ltd.
Robert F. Froese
Vice President, Finance and Chief Financial Officer
(403) 538-8530