NuVista Energy Ltd. Announces Closing of Pipestone Asset Acquisition and Provides Operational Update
CALGARY, Alberta, Sept. 06, 2018 (GLOBE NEWSWIRE) -- NuVista Energy Ltd. ("NuVista" or the "Company") (TSX:NVA) is pleased to announce the successful closing of the previously announced
acquisition of the Cenovus Pipestone Partnership (the "Acquisition") which holds assets in the Pipestone area of Northwest Alberta ("the Acquired Assets").
The Acquisition was partially funded through an offering of 47,415,801 subscription receipts ("Subscription Receipts") at a price of $8.10 per Subscription Receipt for gross proceeds of approximately $384 million. Subscription Receipts totaling 20,990,000 were issued pursuant to a prospectus offering and an additional 26,425,801 Subscription Receipts were issued pursuant to a private placement to certain investors, each led by CIBC Capital Markets., Peters & Co. Limited and RBC Capital Markets which closed on August 30, 2018 (together, the "Financings"). In accordance with their terms, each Subscription Receipt was exchanged for one common share upon the closing of the Acquisition and the proceeds from the sale of the Subscription Receipts were released from escrow to partially fund the purchase price of the Acquisition. The balance of the purchase price was funded through the Company's increased credit facility. Holders of Subscription Receipts are not required to take any action in order to receive common shares.
We are pleased to confirm that the Acquired Assets have continued to perform smoothly during the transition period, with Cenovus Energy Inc. field estimated average production of 10,300 Boe/d for the month of August. The integration of the Acquired Assets and associated staff is ongoing, and development planning has commenced. NuVista’s assets have also continued to perform strongly with several new wells now on production. August field estimated production was 40,500 Boe/d prior to the addition of the Acquired Assets which will be effective September 6th.
We have continued with successful drilling and completion operations, and we are pleased to note that our Bilbo compressor station facility has continued well above the nameplate capacity of 18,000 Boe/d, with several weeks exceeding 20,000 Boe/d. We have recently brought a three-well pad on production at Bilbo, and we are accelerating the completion of a five-well pad this fall to ensure first quarter 2019 facility capacity is maximized.