NuVista Energy to acquire natural gas acreage in core areas
The acquisition has an effective date of October 1, 2008, and an expected closing date of January 20, 2009. The completion of the acquisition is subject to customary conditions and rights of first refusal with third parties on a minor portion of the acquired assets. The asset purchase will be part of NuVista's previously announced 2009 preliminary capital budget of C$290 million of which approximately C$75 million has been allocated to acquisitions. Current production from the acquired properties is approximately 1,600 barrels of oil equivalent (boe) per day, with a 78% natural gas weighting. These properties reportedly consolidate NuVista's interests in existing core areas at very attractive metrics, with more than half of the production being operated. As of October 1, 2008, the company's proven-plus-probable reserves were estimated by a third-party reserves evaluator to be 4.8 million boe. Proven reserves are estimated to be 3.5 million boe.