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NuVista Energy (T.NVA) reports 48% increase to 2013 year-end reserves – drops 6%

Stockhouse Editorial
0 Comments| February 7, 2014

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NuVista Energy (TSX:NVA, StockForum), a Calgary-based firm engaged in the exploration for and development and production of Canadian oil and gas reserves, announced a considerable increase in reserves at year-end based on a recently received report by GLJ Petroleum Consultants.

According to the news release, “Increased proved plus probable reserves ("2P") by 48% to 139 MMBoe and total proved reserves ("1P") by 36% to 80 MMBoe, despite divestitures of non-core assets through the year. Excluding the effect of these divestitures, the 2P and 1P reserve increases were 64% and 53% respectively.”

It then added that the company had, “Increased the before tax net present value discounted at 10% of 2P reserves by 70% to $1.3 billion including the effect of divestitures;

Organic 2P reserve additions replaced 950% of production in the year (almost 10 times 2013 annual production), while proved developed producing reserve additions alone replaced 147% of annual production; and increased our reserve life index(1) ("RLI") for 2P reserves from 14.6 years to 22.2 years and the 1P RLI from 9.2 years to 12.8 years.”

The release then summed up, “We are off to a strong start in 2014 with a busy program prior to spring breakup and major facilities being constructed to pave the way for our significant production volume build in the second half of the year, particularly in the fourth quarter. We will continue our focus and demonstrated results in reducing cost and we will continue to pursue expansion of our typecurve through longer horizontal wells, more fracture stages, and the many other improvements which are strongly driven by ingenuity, engineering, and empirical learning in a repeatable resource play.”

NuVista was in the news recently when the company presented at the CIBC Institutional Investor Conference at the end of January.

Shares fell 6.08% on the news to $8.50 per share.

Currently there are 135.0m outstanding shares with a market cap of $1.2 billion.



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