NuVista Energy Ltd. Announces Increased Montney Egress Capacity
20 Mai 2014 - 2:00PM
Marketwired Canada
NuVista Energy Ltd. ("NuVista") (TSX:NVA) is pleased to announce that it has
signed an agreement with SemCAMS ULC ("SemCAMS") for transportation and
processing of 30 MMcf/d of raw gas from our condensate rich Montney play in the
Wapiti area of Alberta. The agreement is underpinned by take-or-pay terms for a
period of 10 years. To provide the capacity, SemCAMS will construct a 34 km x
8-inch diameter pipeline loop of their Northwest Wapiti Pipeline which will
expand their existing pipeline capacity by 30 MMcf/d of raw gas. The existing
Northwest Wapiti Pipeline and the loop which will be constructed both connect to
NuVista's Elmworth (North) Development Block in which we have continued to
experience expanding drilling success and running room. When added to our
existing extended SemCAMS contract at Elmworth, this agreement will expand
NuVista's total Elmworth block egress capacity to 47 MMcf/d of raw gas for 10
years. The existing and future expanded volumes flow to the SemCAMS operated
Kaybob South 3 (K3) gas plant for processing. The pipeline is expected to be in
service in mid 2015.
In order to deliver to this contract, NuVista will be constructing a compressor
station in the Elmworth Development Block to augment the existing compression
capacity to at least 47 MMcf/d. Long lead equipment for the 100% NuVista owned
compressor has already been ordered and the development wells which will be
required to be drilled to fill this capacity are already accounted for in our
planned 2014 and 2015 planned capital spending programs.
NuVista is very pleased to mark yet another milestone towards the continued long
term growth of our Montney play and the creation of significant shareholder
value. With improving type curves, reducing costs, and exceptional economics,
NuVista is confident to continue increasing our capital growth in the future
while prudently maintaining balance sheet strength. Further details regarding
this press release can be viewed in our corporate presentation which has been
updated on our website www.nuvistaenergy.com as of May 20, 2014.
ADVISORY REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS
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, relating to the expansion of
SemCAMS Northwest Wapiti Pipeline including the timing and benefits to be
obtained by us therefrom; our plans to construct a compressor station in the
Elmworth Development Block and the resulting anticipated increased production
capacity and our plans to fill the increased capacity, our drilling plans and
the results therefrom; our future strategy, plans, focus, and growth
initiatives; and expectations of future results, including long-term profitable
growth, type curves, costs and other economics.
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 receipt of the necessary approvals for the pipeline
and compressor expansions and on the timeframes contemplated, 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. 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 NuVista will derive therefrom. NuVista has included the forward-looking
statements 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.
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".
FOR FURTHER INFORMATION PLEASE CONTACT:
NuVista Energy Ltd.
Jonathan Wright
President and CEO
(403) 538-8501
NuVista Energy Ltd.
Robert Froese
VP, Finance and CFO
(403) 538-8530
www.nuvistaenergy.com
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