NuVista Energy Announces Long Term Gas Processing Agreement for Wapiti Montney Production; Hit Yr Highs Monday
NuVista Energy Ltd. (NVA.TO), which hit a year high $7.04 on Monday, announced that it has reached an agreement with Keyera Corp. (KEY.TO) for the transportation and processing of its Wapiti Montney condensate-rich natural gas production. The companies have agreed to a 10 year arrangement with an initial firm capacity of 35 MMcf/d of raw natural gas production commencing in the second quarter of 2014, and increasing to 65 MMcf/d potentially as early as late 2014. The agreement provides flexible terms through a minimum Take-or-Pay commitment of 75% of these volumes. NuVista will not be contributing any capital towards the arrangement; however, the Keyera processing and transportation fee will include capital and operating fee components. NuVista's area strategy is to reduce operating costs through economies of scale from operated wells and facilities and expects to realize a 25-33% reduction in overall Wapiti Montney operating costs by mid-2014. This arrangement with Keyera, along with the efficiencies continuing to build in our operated field wells and facilities, facilitates our strategy. The Board of Directors of NuVista and Keyera have approved this agreement.
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