CALGARY, ALBERTA–(Marketwired – June 28, 2016) – NuVista Energy Ltd. (“NuVista” or the “Company”) (TSX:NVA) is pleased to announce that it has closed its previously announced funding initiatives taken to increase growth, value, and liquidity for the remainder of 2016 and 2017. These steps include the sale of our W6 Deep Basin Non-Montney Assets (“W6 Assets”), the issuance of senior unsecured notes (“Senior Notes”) and completion of a flow through share offering (the “Offering”). The details of which are outlined below:
- The W6 Asset disposition closed on June 17, 2016 for cash proceeds after adjustments of approximately $69 million ($70 million before adjustments) which also included the receipt by NuVista of certain Wapiti area Montney lands;
- The Senior Notes were issued on June 22, 2016 for net proceeds of approximately $67 million; and
- On June 28, 2016, we completed the private placement of 3,252,411 common shares for total net proceeds of approximately $21.5 million. The shares were issued on a “flow through” basis in respect of Canadian Development Expenses pursuant to the Income Tax Act (Canada) at a price of $6.65 per share. In addition, of the total common shares issued, 92,000 common shares were acquired by certain directors, officers and employees of the Company on a non-brokered, “flow through” basis on the same terms.
The total net proceeds from these transactions of approximately $158 million were used to initially pay down our bank debt. As at June 30, 2016, the total amount drawn on our current $200 million credit facility is forecasted to be $90 million or 45% drawn.
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’s primary focus is on the scalable and repeatable condensate-rich Montney formation in the Alberta Deep Basin (Wapiti Montney).