Current NVA:CA Stock Info

Focused on condensate-rich gas plays in Alberta and British Columbia, NuVista Energy Ltd (ticker: NVA) has been and continues to develop strong assets within the Montney gas play.

The majority of NuVista’s activity is centered in the Wapiti Montney—where it holds approximately 135,000 gross acres with an 86% working interest.

In addition to its core Wapiti Montney assets, NuVista holds approximately 440,665 net acres of what it considers non-core assets in Alberta. This acreage is spread between four different sites in Alberta, with a variation in working interests between sites. In Q1, 2017, the non-core assets contributed an average of 1,068 BOEPD out of NuVista’s total daily 26,731 BOEPD, roughly approximately 4%.

The Wapiti Montney play itself has earned NuVista’s focus due to its scalability and repeatability, in terms of the regular gas and pressure distribution of the formation.  The formation is also extremely porous for an unconventional gas play, extremely thick—ranging between 500 and 650 ft., and has yielded high condensate volumes. The Wapiti Montney play made up the remaining 96% of NuVista’s average daily production in Q1, 2017, at 25,662 BOEPD.

NuVista Energy: Building Wapiti Montney Production, Capacity

Source: NuVista Energy LTD

Focusing on, developing core zones

In keeping with its development of the Wapiti Montney, NuVista has planned approximately 29 wells between its four Wapiti Montney zones for 2017.

NuVista has four zones that make up its core Wapiti Montney zones. The Bilbo zone is considered a free cash-flow generation zone, with existing infrastructure and robust production—amounting to approximately 20,000 BOEPD, with approximately a third of that coming in as condensate.

Despite its significant degree of development, relative to the other zones, the Bilbo zone added 5 wells during Q1, 2017

The Elmworth development block is, as of June 2017, undergoing a volume ramp and is producing approximately 12,500 BOEPD.

NuVista Energy: Building Wapiti Montney Production, Capacity

Source: NuVista Energy LTD

Building on opportunity in the Wapiti Montney

The Gold Creek development block during the 2016/2017 year was within its early development stage with the addition of a compressor. The zone itself has 5 producing wells, with plans to add approximately 4 additional wells throughout 2017. To date, the field has produced a little over 1.6 Bcf of natural gas.

NuVista’s Pipestone development block is undergoing facilities planning, with the company intending to undergo development during the 2019-2020 year. Early drilling development will occur during 2017 with the addition of at least one well.  An initial type curve predicted the Pipestone’s raw gas EUR to be approximately 5 Bcf.

Building capacity for future production

In order to accommodate future growth in rich gas production, NuVista has built several gas processing facilities situated near its high-production areas. The Bilbo compression station boasts a processing capacity of 80 Mmcf/d of raw gas and 8000 BPD of condensate. The Elmworth compression station can process 80 Mmcf/d of raw gas and 4000 BPD of condensate. The smallest facility, NuVista’s North compression station, has capacity for 35 Mmcf/d.

In anticipation of increased production, NuVista signed a 15-year take-or-pay agreement in October, 2016 with SemCAMS, which is constructing the SemCAMS Wapiti sour gas plant. The plant will be completed in 2019 and will be capable of processing 200 mmcf/d of raw gas and 20,000 BPD of condensate.

NuVista Energy: Building Wapiti Montney Production, Capacity

Source: NuVista Energy LTD

NuVista is presenting at EnerCom’s The Oil & Gas Conference®

NuVista Energy LTD will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.

The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors.  The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.

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