CALGARY, Alberta, Oct. 01, 2018 (GLOBE NEWSWIRE) — NuVista Energy Ltd. (“NuVista” or the “Company”) (TSX:NVA) is pleased to announce the commencement of development for our Pipestone South block of land.
NuVista would like to confirm we have received internal board approval as well as regulatory approval from the Alberta Energy Regulator for the construction of the Pipestone South compressor station west of Grande Prairie, Alberta. This compressor station has been upsized 50% from original plans and is now designed for approximately 15,000 Boe/d of production with the first stage of 10,000 Boe/d scheduled for start up in late fourth quarter 2019. The compressor station will gather raw natural gas and condensate from our Pipestone South block of land with the raw gas being transported via pipeline to the SemCAMS ULC (“SemCAMS”) Wapiti gas plant. The gas plant is under construction and is scheduled for startup in the spring of 2019. Natural gas sales egress at the Wapiti gas plant was contracted with NGTL several years ago in conjunction with the commencement of the Wapiti gas plant project.
In addition to construction of the Pipestone South compressor station, NuVista is pleased to announce it has entered into an agreement with SemCAMS to construct the Pipestone Pipeline Project. Construction will begin this fall and includes a raw gas pipeline connecting NuVista’s Pipestone South compressor station to the SemCAMS Wapiti gas plant for gas processing under the existing terms of the Wapiti gas plant agreement. The Pipestone Pipeline Project includes a firm raw gas transportation agreement for a period of 15 years matching the term of the Wapiti gas plant agreement. Contracted transportation of raw gas will be added in two incremental steps with 40 MMcf/d available by late fourth quarter 2019, increasing to 60 MMcf/d by mid-2020. These amounts are commensurate with the 10,000 Boe/d and 15,000 Boe/d steps noted above for compressor station staging.
All of the actions, timelines, and spending plans described above are in line with those which were previously noted in our acquisition press release dated August 9, 2018. There are no changes to the 2018 guidance and preliminary 2019 outlook previously provided by NuVista. We look forward to finalizing and announcing our formal 2019 guidance as part of our annual budget process in the fall.
We would like to take this opportunity to thank Chris McDavid, formerly Vice President of Development & Engineering, for his 15 years of dedicated service to NuVista. Mr. McDavid has resigned to pursue other opportunities, and we wish him and his family all the best in their future endeavours.
NuVista has top quality assets and every team member is focused upon relentless improvement. We are excited to pursue our growth plan to 110,000 Boe/d. We would like to thank our staff, contractors, and suppliers for their continued dedication and delivery, and we thank our board of directors and our shareholders for their continued guidance and support.