Asset A&D

NuVista Energy Divests Non-Core Wembley Area Assets in Alberta

By Mahati K L
February 26, 2021
a minute read
River and Mountains Alberta

TSX-listed NuVista Energy Ltd. has entered into a definitive Purchase and Sale Agreement (PSA) with an undisclosed Canadian operator to divest certain oil & gas assets located in Alberta’s Wembley area, for a total consideration of C$94 million, subject to customary adjustments.

The agreement includes the sale of certain non-core Charlie Lake and Cretaceous unit assets. The assets primarily target the Greater Wapiti-Montney formation, and contain NuVista’s 78,000 acre undeveloped Charlie Lake oil opportunity. The deal also includes certain water infrastructure assets in the Wembley/Pipestone area of Alberta. Estimated 2021 production from the assets is approximately 1,100 boe/d.

“Upon closing, the entire $94 million in proceeds will be applied to reduce borrowings on NuVista’s senior secured revolving credit facility,” the company said in a statement.

Calgary-based NuVista Energy is engaged in the exploration, development and production of oil and natural gas reserves in Western Canada, with a primary focus on the condensate-rich Montney formation in the Wapiti area of the Alberta Deep basin.

The transaction, which is subject to customary closing conditions, is expected to close on or around March 31st.

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