NuVista Energy Ltd. Announces Long Term Gas Processing Agreement for Wapiti Montney Production

NuVista Energy Ltd. Announces Long Term Gas Processing Agreement for Wapiti 
Montney Production 
CALGARY, ALBERTA -- (Marketwired) -- 04/08/13 -- NuVista Energy Ltd.
("NuVista")(TSX:NVA) is pleased to announce that it has reached an
agreement with Keyera Corp. ("Keyera") for the transportation and
processing of its Wapiti Montney condensate-rich natural gas
production. The companies have agreed to a 10 year arrangement with
an initial firm capacity of 35 MMcf/d of raw natural gas production
commencing in the second quarter of 2014, and increasing to 65 MMcf/d
potentially as early as late 2014. The agreement provides flexible
terms through a minimum Take-or-Pay ("TOP") commitment of 75% of
these volumes. NuVista will not be contributing any capital towards
the arrangement; however, the Keyera processing and transportation
fee will include capital and operating fee components. NuVista's area
strategy is to reduce operating costs through economies of scale from
operated wells and facilities and expects to realize a 25-33%
reduction in overall Wapiti Montney operating costs by mid-2014. This
arrangement with Keyera, along with the efficiencies continuing to
build in our operated field wells and facilities, facilitates our
strategy. The Board of Directors of NuVista and Keyera have approved
this agreement. 
The Keyera agreement will ensure the continued progression of
NuVista's Montney development program and result in facilitating the
acceleration of production growth, while significantly reducing
operating costs over the current cost structure. NuVista is
continuing to experience improved well performance; decreasing
capital costs and expanding resource size and this agreement will
further serve to underpin line-of-sight towards profitable full-field
NuVista welcomes Keyera as a reliable operating partner and sees this
arrangement creating significant synergies for both parties. NuVista
gains valuable access to increased sour processing capacity at a
reasonable cost, while meeting the needs of the Keyera Simonette sour
gas processing facilities, thereby maximizing plant efficiencies and
improving plant economics. In order to accommodate production from
the Wapiti development, Keyera will construct a 90 kilometer 12 inch
diameter pipeline from a future NuVista compressor station in the
South block of its Wapiti Montney lands at 03-36-065-06W6M, to the
existing Keyera Simonette gas plant at 09-06-063-25W5M. Keyera will
also construct additional plant inlet facilities to accommodate the
gas and liquids production from Wapiti. The aforementioned facilities
will be subject to receiving all regulatory approvals. NuVista has
also been provided in this arrangement the possibility of a future
deep cut processing expansion at the Simonette plant, and will
participate in that project should it proceed. 
An additional and significant mutual synergy associated with this
project is the fractionation and marketing of NuVista's natural gas
liquids (NGL's). Keyera has material capability in this regard and
the agreement provides for the fractionation and marketing of the
associated NuVista liquids streams from the Wapiti Montney, for the
term of the agreement. NuVista is pleased to have the certainty of
delivery and pricing that comes with this arrangement, while being
aligned with a vertically integrated NGL midstream company of good
scale and competitiveness. 
As previously announced, NuVista is entering the second year of a
five year firm TOP transportation agreement for processing at the
SemCAMS' operated K3 plant. This agreement started at 10 MMcf/d and
increases to 17 MMcf/d in July 2013. NuVista has also entered into a
short term firm TOP agreement (one year) for an additional 15 MMcf/d
or raw gas with another third party for gas gathering services and
with SemCAMS' for transportation and onwards for final processing at
the SemCAMS' operated K3 plant. This additional capacity was made
available to NuVista commencing April 1, 2013 and will provide
capacity for NuVista's growing 2013 volumes. 
NuVista anticipates utilizing between two and three drilling rigs
consistently over the next couple of years in order to provide
significant production growth and fulfill this and other processing
commitments. A fourth rig is possible in the future, however, that
decision will be made later in time and will in part depend upon
commodity prices, drilling success, and excess capacity available
after the expanded facilities are optimized. NuVista continues to
maintain the flexibility to control the pace of activity as the
economics dictate. In addition to the economics of this play being
dramatically improved as a result of this arrangement, NuVista will
also benefit greatly from processing capacity at multiple facilities
as noted above, as this will reduce the impact of any single facility
outage. NuVista is excited to be taking this next critical step
forward in the evolution of this large, condensate-rich, Montney
resource play and looks forward to announcing further progress in our
Q1 2013 press release on or about May 8, 2013. 
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 terms and benefits of the agreement with Keyera including,
anticipated future processing commitments and the timing thereof,
anticipated accelerated production growth and field development,
reduced operating costs, increased economies of scale, flexibility
and certainty of marketing, delivery and pricing and a reduction in
the impact of any single facility outage; Keyera's plans to construct
a pipeline to and inlet plant facilities at its Simonette plant;
Keyera's plans for and NuVista's intention to participate in a future
deep cut processing expansion at Keyera's Simonette plant; and
NuVista's future drilling plans and the results therefrom.  
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: obtaining all
necessary approvals and consents for the construction of the
additional facilities at the Simone
tte plant; construction and input
costs; construction scheduling variables; 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, 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, drilling plans and the success
obtained in drilling new wells, the sufficiency of budgeted capital
expenditures in carrying out planned activities, 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.  
We have included the above summary of assumptions and risks related
to forward-looking statements provided in this news release in order
to provide investors with a more complete perspective on our current
and future operations and such information may not be appropriate for
other purposes. 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 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 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".
NuVista Energy Ltd.
Jonathan A. Wright
President and CEO
(403) 538-8501
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