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Nuvista Energy Ltd. Announces Second Quarter 2014 Results and Updated Reserves and Resource Report

CALGARY, ALBERTA -- (Marketwired) -- 08/12/14 -- NuVista Energy Ltd. ("NuVista") (TSX: NVA) is pleased to announce results for the three and six months ended June 30, 2014 and provide an update on its future business plans. During the second quarter of 2014 NuVista significantly advanced our long term goals with further development drilling focused mainly on the Montney formation in the South Bilbo development block, achieved two new IP30 production results, conducted new facility startups, and continued to make progress in non-core divestitures. Although our Wapiti production was highly restricted by both planned and unplanned outages at third party facilities, NuVista delivered production above the top of our second quarter guidance range of 13,000 to 14,000 Boe/d. Several of the facility restrictions during the quarter included work on third party facility capacity expansions which, along with new NuVista facilities, lay the foundation for significant growth for years to come. Daily rate production has now already reached 20,000 Boe/d. Material volumes continue to build behind pipe which allow NuVista to increase our previously announced fourth quarter 2014 guidance to between 20,000 to 23,000 Boe/d.

In addition, an independent evaluation of NuVista's Wapiti Montney reserves has been updated. Proved and Probable reserves have increased markedly through a combination of successful drilling and positive revisions to existing reserves due to out-performance of our initial wells. Despite these substantial increases to reserves and resources, just 14% and 58% of NuVista's gross Montney landholdings are currently attributed reserves and contingent resources respectively.

We have participated in an active commodity hedge program to ensure a strong baseline price underpinning our capital plans and economic threshold. For the remainder of 2014, approximately 71% of our gas production is hedged with floor prices of $3.49/GJ AECO. NuVista's hedge position for 2015 is approximately 38% of 2015 forecasted gas production hedged and 31% of oil and condensate production hedged at approximate floor prices of $3.73/GJ AECO and C$99.65/Bbl WTI, respectively. We have positioned the Company to provide strong long-term profitable growth in a $3.50/GJ AECO natural gas price environment due to the material and growing high value condensate production and also due to the continuous improvement of our capital and operating efficiencies. In this scenario, NuVista continues to be in an excellent position to deliver growth and profitability.

Significant highlights for the second quarter of 2014

--  Achieved an average production rate of 14,493 Boe/d versus a guidance
    range of 13,000 to 14,000 Boe/d. Second quarter production was
    temporarily reduced from 17,823 Boe/d in the first quarter as expected
    due to planned major maintenance outages at downstream facilities
    including SemCAMS K3 and CNRL Gold Creek plants, and was above the top
    of the second quarter guidance despite an unplanned three month outage
    on the Pembina C3+ pipelines downstream of SemCAMS K3 plant;

--  Achieved funds from operations of $15.1 million in the second quarter of
    2014 compared to $30.9 million in the first quarter of 2014. The
    decrease in funds from operations was due primarily to the temporary
    shut-in of the majority of our high netback condensate-rich Montney
    production for planned and unplanned outages. In the first quarter
    Montney production was 8,057 Boe/d at a netback of $38.28/Boe, while in
    the second quarter Montney production was temporarily cut back to 4,472
    Boe/d with a netback of $38.99/Boe, for a quarterly difference of
    approximately $12.5 million. Montney production has been subsequently
    restored as of August 1, bringing total NuVista daily rates as high as
    20,000 Boe/d;

--  Finished drilling, fracture stimulating, and testing several additional
    wells with continued favorable results. As we await the startup of
    downstream facilities, it is not possible yet to achieve IP30 rates on a
    number of wells however NuVista expects to have up to 25 wells on
    production by the end of the third quarter as compared to 16 wells at
    the beginning of the first quarter. We expect to have approximately 32
    Montney wells on production by year end 2014;

--  Despite temporary facility curtailments, NuVista achieved significant
    new IP30 production rates on two wells as follows - presented versus
    typecurve expectation:

New Well IP30 Results

                                  Raw         Liquid      Total          CGR
Well                              Gas   Hydrocarbons      Sales      C5+/Raw
                             (MMcf/d)       (Bbls/d)    (Boe/d)  (Bbls/MMcf)
Average Wapiti Montney                           261
 delineation well typecurve       5.8     Condensate      1,222           45
Well 20 (Northeast
 Delineation)                                    228
Location: 103/13-25-68-7W6M       1.8     Condensate        474          128
Average Bilbo Development                        435
 well typecurve                   5.8     Condensate      1,356           75
Well 21 (Bilbo Delineation)                      576
Location: 4-5-66-6W6M            10.3     Condensate      2,195           56
(i) Well numbering for the Montney refers to the numbered wells in our
 corporate presentation available on our website. They are effectively in
 chronological order since our inception in the play. All numbers shown are
 based on field estimate data.

--  The IP30 for Well 20 is significant given the location. The well is
    located on the far Northeast corner of NuVista's Montney position. We
    are strongly encouraged that this initial test has proven the area to be
    highly condensate-rich, over-pressured and home to some of the lowest
    drilling and completion costs to date due to slightly shallower depth.
    We are currently drilling an offset location to this well and expect to
    optimize the completion design to further improve deliverability;

--  Well 21 is the strongest Montney well completed on our lands to date.
    The IP30 at 2,195 Boe/d is effectively equal to the highest of all of
    NuVista's wells, but this rate was achieved at a very high flowing
    pressure of 3200 psi due to being significantly choked due to our
    temporary facility restrictions. For comparison, our Montney wells
    typically reach pipeline pressure of approximately 600 psi within the
    IP30 period. This is the best result to date on the Bilbo block and
    leaves us very encouraged as we look to bring on a number of new Bilbo
    block wells over the remainder of 2014;

--  Started up our large new compressor and dehydration facility in the
    Bilbo block. This project commenced production on time, at the end of
    second quarter, and on budget. When ramped up to full capacity over the
    next number of quarters, the facility has a design capacity for up to 80
    MMcf/d of raw gas and 8,000 Bbls/d of raw condensate. The facility is
    performing very well and is essentially idling while awaiting increased
    downstream capacity via SemCAMS K3 plant and the startup of the new
    Keyera pipelines to the Simonette plant;

--  NuVista continued its non-core divestiture program with two transactions
    in Central and Northwest Alberta, one of which has closed in the second
    quarter and one which is expected to close in the third quarter.
    Proceeds were $9.7 million before closing adjustments with approximate
    production of 875 Boe/d. These divestitures further reinforce our
    commitment to concentrate on the Wapiti core area;

--  Recognized a material increase to the Montney Discovered Petroleum
    Initially In Place ("DPIIP") via an updated independent resource
    evaluation, reaching 7.8 TCF or 1.3 billion Boe which is an increase of
    40% from the last evaluation completed in October, 2013;

--  Achieved a significant increase in corporate reserves through Montney
    additions, reaching 107.1 MMBoe or an increase of 33% on a proved basis
    and 185.9 MMBoe or an increase of 33% on a proved plus probable basis.
    The proved plus probable net present value of the reserves at a 10%
    discount rate before tax has now reached $1.9 billion based on GLJ
    Petroleum Consultants Ltd. ("GLJ") July 1, 2014 pricing;

--  Achieved an increase in Economic Contingent Resources ("ECR") of 7%,
    reaching 455 MMBoe despite having transferred more than 40 MMBoe or 10%
    to the proved plus probable reserve category from ECR. The evaluation
    does not yet include any discovered resources in the Lower Montney zone.
    GLJ's Best Estimate of the condensate component of the ECR has increased
    to 105.7 MMBoe or 23% of the ECR on a Boe basis. The total NGL component
    including propane, butane, and condensate has now reached 150.0 MMBoe in
    the Best Estimate case. Based on GLJ's July 1, 2014 forecast prices, the
    before-tax net present value, discounted at 10%, associated with the
    Best Estimate of the ECR is $2.61 billion compared to $2.35 billion at
    October 31, 2013. It is expected that significant value remains to be
    unlocked as NuVista continues to delineate its landholdings and
    resources are converted to reserves and production. Please refer to the
    table further down in this document for more details; and

--  Successfully executed a total capital program of $61.8 million in the
    quarter. The first half 2014 drilling program was focused largely on
    converting Bilbo ECR to reserves for the startup of the new Bilbo block
    facilities. Drilled 4 wells (4 net) for 100% success rate while
    completing spending on our Bilbo block compressor station and trunk

The new Keyera liquids and gas pipelines connecting the Wapiti field to the Simonette Gas Plant are now anticipated to start up late in the third quarter of 2014.

The unplanned Pembina Pipeline outage was caused by nearby riverbank erosion downstream of the SemCAMS K3 plant. As a result, NuVista has been prevented in the second quarter from fully utilizing the emerging diversity of connections in the new NuVista and midstream facilities being installed this year. The Pembina liquids pipeline is being repaired and is expected to be brought back online in mid-August. NuVista has been able to partially increase deliveries from our new Bilbo compressor station, with total Company volumes having now reached daily production rates of 20,000 Boe/d as of early August 2014. This rate is still restricted by downstream facilities but may improve further in mid-August after the Pembina pipeline starts up. The next significant production increase is slated for October, after Keyera starts up their new gas and liquids pipelines to the Simonette plant late in the third quarter.

Summary of Curtailments and Capacity Milestones

                              Quarter                               Planned/
Item                         Impacted  Duration   Startup Date     Unplanned
SemCAMS K3 Plant Turnaround        Q2   35 days        June 30       Planned
CNRL Gold Creek Turnaround         Q2   26 days        June 26       Planned
Pembina C3+ Pipeline
 downstream of SemCAMS K3     Q2 & Q3  118 days      August 19     Unplanned
CNRL Wapiti Sweet Plant
 Turnaround                        Q3   10 days   September 20       Planned
SemCAMS KA Plant Turnaround        Q3   17 days    September 1       Planned
Keyera New Simonette
 Pipeline                          Q3  Start up         End Q3       Delayed

2014 & 2015 Production Guidance Re-Affirmed

We are currently estimating a third quarter production range of 17,300 to 18,300 Boe/d which incorporates planned facility outages at SemCAMS KA plant and CNRL Wapiti sweet plant. While NuVista achieved its production targets for the second quarter, the third party outages affected our highest netback Montney production and hence left significant high liquids gas behind pipe. This resulted in lower netbacks for NuVista overall in the second quarter and therefore reduced cashflow. Despite the delay in the new Keyera infrastructure, we are forecasting an increase in our fourth quarter production volumes from the previous guidance of 20,000 to 21,000 Boe/d to a range of 20,000 to 23,000 Boe/d due to excellent ongoing Montney drilling results. The wide range is due to high well availability balanced by the need to see the startup date and the performance of the new facilities during the initial run-in period.

We are now targeting 2014 capital closer to the lower end of the previous guidance range of $300 to $315 million as a result of the deferral of one or two Montney wells. We will re-evaluate frequently as production ramp-up dates become firm. We believe this strikes the appropriate balance between managing capital pace in the short term while preserving long term financial goals. Despite the aforementioned unplanned outages in the second quarter, we also reaffirm our full year production guidance of between 17,500 and 18,500 Boe/d for 2014 and our 2015 production guidance of 23,500 to 25,000 Boe/d. All of these guidance comments are net of the effect of 2014 year-to-date divestitures which have been announced, with daily rates totaling 875 Boe/d. 2014 funds from operations is anticipated to be in the range of $110 to $120 million based on current strip commodity prices.

Board of Directors and Executive Announcements

NuVista is pleased to announce the addition of Mr. Brian Shaw to our Board of Directors effective August 12, 2014. Mr. Shaw is an experienced financial industry executive with particular expertise in corporate finance, capital markets and investing activities. Mr. Shaw worked for CIBC World Markets (and its predecessor firm Wood Gundy) for 23 years. He was the Chairman and CEO of CIBC World Markets from 2005 to 2008 and prior to that managed the Global Equities Division for a number of years. Mr. Shaw is a director of EnCana, PrairieSky Royalty Ltd., Manulife Bank of Canada (a private chartered bank) and Manulife Trust Company (a private trust company). We welcome Mr. Shaw to our Board and look forward to his guidance and support.

NuVista would like to announce that Mr. Robert Froese, CFO, is resigning from the Company effective August 29, 2014. Mr. Froese has served NuVista faithfully and skillfully for 8 years and was instrumental in helping to lead the transition to the successful resource play focus the Company currently enjoys. We wish Mr. Froese all the very best in his future plans.

NuVista is also pleased to announce that Mr. Ross Andreachuk, currently VP Controller at NuVista, will be promoted to the position of CFO effective September 1, 2014. Mr. Andreachuk brings with him 26 years of financial, investor, and capital markets experience including 8 years at NuVista, working closely with Mr. Froese and taking on increasing levels of accountability, particularly in the last 6 months as we have been working together with Mr. Froese to plan the timing for his departure. We are confident that Mr. Andreachuk's extensive knowledge of the Company will allow for a smooth transition and are confident in his ability to succeed in this very important role.

With corporate netbacks and production rising quickly, and efficiencies continuing to build in every aspect of our Wapiti Montney play, NuVista is confident to continue accelerating the pace of activity in the future. We will continue to work with area midstream companies to provide incremental facility capacity to underpin long-term profitable growth. We would like to thank our shareholders for their continued support, our Board of Directors for their ongoing guidance, and our dedicated and talented staff for their significant contributions to the bright future we are delivering together.

Corporate Highlights
                                   Three months ended      Six months ended
                                             June 30,              June 30,
($ thousands, except per share)       2014       2013       2014       2013
Oil and natural gas revenue         51,734     54,158    120,631     95,906
Funds from operations(1)            15,053     18,983     45,946     30,612
  Per basic share                     0.11       0.16       0.34       0.26
  Per diluted share                   0.11       0.16       0.34       0.26
Net earnings (loss)                (11,837)    (7,383)   (16,195)   (11,444)
  Per basic share                    (0.09)     (0.06)     (0.12)     (0.10)
  Per diluted share                  (0.09)     (0.06)     (0.12)     (0.10)
Adjusted net earnings (loss)(1)     (5,509)    (4,850)    (2,842)   (13,471)
  Per basic share                    (0.04)     (0.04)     (0.02)     (0.11)
  Per diluted share                  (0.04)     (0.04)     (0.02)     (0.11)
Total assets                                           1,036,961    934,089
Long-term debt, net of adjusted
 working capital(1)                                      186,319     94,786
Capital expenditures                61,839     30,963    188,408     99,752
Proceeds on dispositions             8,553       (204)     8,553     12,392
Weighted average common shares
 outstanding (thousands):
  Basic                            135,593    118,665    135,366    118,643
  Diluted                          135,593    118,665    135,366    118,643
  Natural gas (MMcf/d)                59.8       73.5       65.1       68.2
  Condensate (Bbls/d)                1,794      1,980      2,296      1,485
  Butane (Bbls/d)                      514        502        545        437
  Propane (Bbls/d)                     549        737        765        662
  Ethane (Bbls/d)                      995        985        927        874
  Oil (Bbls/d)                         670      1,354        767      1,542
    Total oil equivalent (Boe/d)    14,493     17,799     16,148     16,359
Average product prices (2)
  Natural gas ($/Mcf)                 4.33       3.43       4.42       3.34
  Condensate ($/Bbl)                103.00      92.90      98.32      96.32
  Butane ($/Bbl)                     58.66      50.57      59.12      56.10
  Propane ($/Bbl)                    31.24      19.22      48.00      21.89
  Ethane ($/Bbl)                     13.58       9.62      14.51       7.90
  Oil ($/Bbl)                        94.98      81.67      91.78      73.28
Operating expenses
  Natural gas and natural gas
   liquids ($/Mcfe)                   1.84       1.86       1.79       1.86
  Oil ($/Bbl)                        19.94      24.71      19.68      22.13
    Total oil equivalent ($/Boe)     11.46      12.19      11.14      12.20
Operating netback ($/Boe)            18.51      16.34      21.84      15.29
Funds from operations netback
 ($/Boe)(1)                          11.42      11.72      15.72      10.35

(1)   Funds from operations, revenue, funds from operations per share, funds
      from operations netback, operating netback, adjusted net earnings,
      adjusted net earnings per share and adjusted working capital are not
      defined by GAAP in Canada and are referred to as non-GAAP measures.
      Funds from operations are based on cash flow from operating activities
      as per the statement of cash flows before changes in non-cash working
      capital and asset retirement expenditures. Funds from operations per
      share is calculated based on the weighted average number of common
      shares outstanding consistent with the calculation of net earnings
      (loss) per share. Funds from operations netback equals the total of
      revenues including realized commodity derivative gains/losses less
      royalties, transportation, operating, general and administrative,
      restricted stock units, interest expenses and cash taxes calculated on
      a Boe basis. Adjusted net earnings equals net earnings excluding after
      tax unrealized gains (losses) on commodity derivatives, impairments,
      impairment reversals, goodwill impairments and gains (losses) on
      property divestments. Operating netback equals the total of revenues
      including realized commodity derivative gains/losses less royalties,
      transportation and operating expenses calculated on a Boe basis.
      Adjusted working capital excludes the current portions of the
      commodity derivative asset or liability. Total Boe is calculated by
      multiplying the daily production by the number of days in the period.
      For more details on non-GAAP measures, including reconciliation to
      GAAP measures refer to NuVista's "Management's Discussion and
(2)   Product prices exclude realized gains/losses on commodity derivatives.

Update to Wapiti Montney Reserves and Contingent Resource Evaluation

NuVista is also pleased to announce the results of the update to its independent resource evaluation of NuVista's condensate-rich Wapiti Montney asset. GLJ has updated its evaluation of the DPIIP and the ECR associated with the in-place petroleum. The evaluation was performed in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and is effective August 1, 2014 using GLJ's forecast prices as at July 1, 2014.

GLJ's Best Estimate of the condensate component of the ECR has increased to 105.7 MMBoe or 23% of the ECR on a Boe basis. The total NGL component including propane, butane, and condensate has now reached 150.0 MMBoe in the Best Estimate ECR case. Based on GLJ's July 1, 2014 forecast prices, the before-tax net present value, discounted at 10%, associated with the Best Estimate of the ECR is $2.61 billion compared to $2.35 billion at October 31, 2013. It is expected that significant value remains to be unlocked as NuVista continues to delineate its landholdings and resources are converted to reserves and production.

The following table presents a breakdown of the DPIIP associated with NuVista's Montney properties into the component categories:

Discovered Petroleum Initially-
 In-Place (1)                        August 1, 2014       October 31, 2013
                                    MMBoe      Tcfe     MMBoe      Tcfe
Cumulative Production                 3.3     0.020       1.2     0.007
Reserves (Proved + Probable)          136     0.814        29     0.174
Economic Contingent Resources
 (Best Estimate)(2)(3)                455     2.730       425     2.550
DPIIP (Best Estimate)(4)            1,305     7.828  TCF  934     5.603  TCF
(1)   All estimates of resources and reserves in the above table represent
      NuVista's gross resources, reserves or production before the deduction
      of any royalties and without including any royalty interests of
      NuVista. There is no certainty that it will be commercially viable to
      produce any portion of the resources. The resource estimates presented
      above use the resource categories set out in the COGE Handbook. See
      "Reserves and Resource Disclosure".(2)
(2)   All of NuVista's Contingent Resources from its Montney properties are
      considered economic using GLJ's July 1, 2014 forecast prices.
(3)   The primary contingency that prevents the classification of the ECR as
      reserves is for additional drilling, completion and testing to occur
      and confirm viable commercial rates. Proved or proved and probable
      reserves were assigned by GLJ for areas in the immediate vicinity of
      producing or tested wells. ECR were assigned by GLJ beyond areas that
      were assigned reserves but within 3 miles of existing wells. As
      continued delineation drilling occurs, some resources currently
      classified as ECR are expected to be re-classified as Reserves. An
      additional contingency is the lack of infrastructure to facilitate
      full development in the short term, including the necessary facilities
      for gas gathering and processing and for the extraction of natural gas
      liquids. The re-classification of the ECR as Reserves is also subject
      to various non-technical contingencies which must be overcome such as
      lack of markets, legal, environmental and political concerns
      surrounding the possible banning of hydraulic fracturing, a technology
      required to develop the ECR, and other operational risks applicable to
      oil and gas issuers. See "Reserves and Resource Disclosure" and the
      disclosure under the heading "Risk Factors" in the Annual Information
(4)   All of the DPIIP that has not been classified as Cumulative
      Production, Reserves or Contingent Resources is considered
      unrecoverable at this time. A portion of the Unrecoverable DPIIP may
      in the future be determined to be recoverable and reclassified as
      Contingent Resources or reserves as additional technical studies are
      performed, commercial circumstances change or technological
      developments occur; the remaining portion may never be recovered due
      to the physical/chemical constraints represented by subsurface
      interaction of fluids and reservoir rocks.

An update to NuVista's Proved and Probable Montney reserves, which will reflect our active 2014 Montney drilling program, will be included within our regular annual reserves disclosure in our 2014 Annual Information Form.

Summary of Corporate Reserves Data

The following table provides summary reserve information based upon a report (the "GLJ report") prepared by GLJ effective August 1, 2014, using the published GLJ July 1, 2014 price forecast and prepared in accordance with NI 51-101 and the COGE Handbook. NuVista's Wapiti Montney properties were evaluated by GLJ but the remaining properties were mechanically updated from the December 31, 2013 GLJ evaluation.

                     Natural Gas Condensate Liquids(2)        Oil      Total
                         Working    Working    Working    Working    Working
                        Interest   Interest   Interest   Interest   Interest
Reserves category(1)      (MMcf)    (MBbls)    (MBbls)    (MBbls)     (MBoe)
Developed producing      134,644      5,459      3,970      1,252     33,121
Developed non-
 producing                40,490        855      1,423        234      9,260
Undeveloped              255,741     14,563      6,664        856     64,706
Total proved             430,875     20,877     12,057      2,342    107,086
Probable                 313,644     15,973      8,370      2,196     78,812
Total proved plus
 probable                744,519     36,849     20,424      4,538    185,898
(1)   Numbers may not add due to rounding.
(2)   Propane, Butane, Ethane.

Summary Wapiti Montney Play Reserves Data

The following table provides summary Wapiti Montney play reserve information based upon the GLJ Report effective August 1, 2014, using the published GLJ July 1, 2014 price forecast (with comparatives as estimated by GLJ effective December 31, 2013, using the published GLJ January 1, 2014 price forecast):

                                          August 1, 2014   December 31, 2013
                                                 Working             Working
                                                Interest            Interest
Reserves category                                 (Mboe)              (Mboe)
Proved Producing                                  17,104               9,716
Total Proved                                      75,313              46,068
Total Proved plus Probable                       135,587              86,174

The estimates of reserves for the Wapiti Montney play may not reflect the same confidence level as estimates of reserves of all NuVista's properties due to the effect of aggregation.

Please refer to our Corporate Website where we have posted the full details of the reserves and contingent resource reports.


NuVista's second quarter 2014 interim consolidated financial statements and the accompanying Management's Discussion and Analysis will be filed on SEDAR ( under NuVista Energy Ltd. and can also be accessed on NuVista's website at


The reserves and resources estimates prepared herein have been evaluated by an independent qualified reserves evaluator in accordance with NI 51-101 and the COGE Handbook. The reserves and resources have been categorized accordance with the reserves and resource definitions as set out in the COGE Handbook, which are set out below:

Discovered Petroleum Initially-In-Place ("DPIIP") is that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of discovered petroleum initially-in-place includes Cumulative Production, Reserves, and Contingent Resources; the remainder is categorized as unrecoverable.

Cumulative Production is the cumulative quantity of petroleum that has been recovered at a given date.

Reserves are estimated remaining quantities of petroleum anticipated to be recoverable from known accumulations, as of a given date, based on the analysis of drilling, geological, geophysical, and engineering data; the use of established technology; and specified economic conditions, which are generally accepted as being reasonable. Reserves are further classified according to the level of certainty associated with the estimates and may be sub-classified based on development and production status.

Proved Reserves are those quantities of petroleum, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs and under existing economic conditions, operating methods and government regulations.

Probable Reserves are those additional quantities of petroleum that are less certain to be recovered than Proved Reserves, but which, together with Proved Reserves, are as likely as not to be recovered.

Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include such factors as economic, legal, environmental, political and regulatory matters or a lack of markets. It is also appropriate to classify as Contingent Resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage.

There is no certainty that it will be commercially viable to produce any portion of the Contingent Resources or that any portion of the volumes currently classified as Contingent Resources will be produced. The recovery and resource estimates provided herein are estimates. Actual Contingent Resources (and any volumes that may be classified as Reserves) and future production from such Contingent Resources may be greater than or less than the estimates provided herein.

Economic Contingent Resources ("ECR") are those Contingent Resources that are currently economically recoverable based on specific forecasts of commodity prices and costs.

Unrecoverable Discovered Petroleum Initially-In-Place or Unrecoverable DPIIP is that portion of DPIIP which is estimated, as of a given date, not to be recoverable by future development projects. A portion of these quantities may become recoverable in the future as commercial circumstances change or technological developments occur; the remaining portion may never be recovered due to the physical/chemical constraints represented by subsurface interaction of fluids and reservoir rocks.

Best Estimate of a resource represents the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that quantities actually recovered will equal or exceed the best estimate.


This news release contains the terms barrels of oil equivalent ("Boe"), millions of barrels of oil equivalent ("MMBoe") and thousand cubic feet equivalent ("Mcfe") and trillion cubic feet equivalent ("Tcfe"). Natural gas is converted to a Boe using six thousand cubic feet of gas to one barrel of oil. In certain circumstances natural gas liquid volumes have been converted to a Mcfe on the basis of one barrel of natural gas liquids to six thousand cubic feet of gas. Boes, MMBoes, Mcfes and Tcfes may be misleading, particularly if used in isolation. The foregoing conversion ratios are based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. As well, given than the value ratio based on the current price of crude oil to natural gas is significantly different from the 6:1 energy equivalency ratio, using a conversion ratio on a 6:1 basis may be misleading as an indication of value.

Any references in this news release to initial or test production rates are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter. Additionally, such rates may also include recovered "load oil" fluids used in well completion stimulation. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for NuVista.


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, including management's assessment of: NuVista's future strategy, plans, opportunities and operations; plans to provide growth and profitability; forecast production; production mix; drilling, development, completion and tie-in plans and results; expectations of future results, including future production levels, type curves, well economics, operating costs and improved capital efficiencies; future disposition plans; the timing, allocation and efficiency of NuVista's capital program and the results therefrom; the anticipated potential and growth opportunities associtated with NuVista's asset base; infrastructure development plans; planned throughput capacity; planned and unplanned facility outages and facility delays and operating delays; incremental third party facility capacity; forecast funds from operations; the source of funding of NuVista's capital program; NuVista's risk management strategy; expectations regarding future commodity prices and netbacks; and industry conditions. Statements relating to "reserves" and "resources" are also deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves or resources described exist in the quantities predicted or estimated and that the reserves and resources can be profitably produced in the future.

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 wells, the success obtained in drilling new wells, the sufficiency of budgeted capital expenditures in carrying out planned activities, access to infrastructure and markets, 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.

This press release also contains future-oriented financial information and financial outlook information (collectively, "FOFI") about our prospective results of operations and funds from operations, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth above. 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 FOFI and forward-looking statements. NuVista's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and FOFI, or if any of them do so, what benefits NuVista will derive therefrom. NuVista has included the forward-looking statements and FOFI in this press release in order to provide readers with a more complete perspective on NuVista's future operations and such information may not be appropriate for other purposes. 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.

NuVista Energy Ltd.
Jonathan A. Wright
President and CEO
(403) 538-8501

NuVista Energy Ltd.
Robert F. Froese
VP, Finance and CFO
(403) 538-8530

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