NuVista Energy Ltd. (NVA.TO) announced the achievement of a significant milestone in the transformation of its business model with the disposition of three property packages for gross proceeds of approximately $236 million. These dispositions will significantly improve NuVista's financial flexibility and are a key component of NuVista's strategic plan to create sustainable organic growth and shareholder value through the accelerated development and continued delineation of the condensate-rich Alberta Montney in our Wapiti area.

The dispositions include a large portion of NuVista's W5 natural gas assets plus selected W4 heavy oil assets. Specific assets in the disposition include: Ferrier, Alder Flats and Easyford in the W5 operating area; and Chauvin, Auburndale and Wildmere in the W4 operating area. NuVista has entered into three separate asset purchase and sale agreements for the divestitures and expects closing of all three transactions by early October. W5 assets that have been retained include our Fir/Waskahigan liquids-rich gas areas. These three dispositions will materially sharpen the focus of NuVista's business and will allow the company's technical and operating staff to focus on our world class condensate-rich Montney play. Please see below for disposition metrics and NuVista proforma information post disposition.

The net proceeds from these dispositions will initially be used to reduce outstanding bank debt. Our syndicate of lenders is reviewing the revised limit of our credit facility as part of their semi-annual review. NuVista expects the gross proceeds from the dispositions to materially exceed the borrowing base associated with the assets sold. The improved financial flexibility is expected to result in an accelerated capital program in 2012 and 2013 as we focus on our condensate-rich Alberta Montney gas play in the Wapiti area.

BMO Capital Markets has acted as financial advisor for these dispositions.

The Rationale

The Alberta Montney is rapidly emerging as one of the premiere condensate-rich resource plays in North America. Continued delineation drilling by NuVista as well as by industry to the north and south of our Wapiti position has solidified our resolve in committing to the Alberta Montney as the vehicle for our future profitable growth. Repeatable/ predictable drilling and production performance, a large proportion of condensate associated with the gas, and accessible current and future egress options have all been established, indicating that the play is ready to proceed to the early stages of development.

A strategic review of our portfolio and business plan was required to unlock the next steps in value creation. After a detailed review of individual assets, the acquisition and divestiture market conditions, and retention values relative to associated borrowing base, the decision was made that disposition of these non-strategic assets was the next step. It has created balance sheet capacity that will enable us to advance the Montney development at a more rapid pace. The disposed assets are good quality and will benefit from the increased investment focus of the purchasers. Additional non-core assets will continue to be reviewed for potential disposition at the right time.

These divestitures position NuVista towards a more focused, organic growth business plan with the financial flexibility to deliver per share growth in production, reserves, cash flow and value.

Wapiti Area: The Alberta Montney Continues to Deliver Positive Results

NuVista's five well pilot and delineation program is now essentially complete with excellent success. All wells have been tested and results previously released. Only the fifth well remains to be tied in and it is expected to be brought on stream at the end of September. Further development and delineation drilling continues now with one rig drilling steadily. Given the additional flexibility created by the dispositions, we are now analyzing various activity ramp-up scenarios in the Montney. We are in a favorable land expiry position therefore there is significant optionality in capital ramp-up, particularly with the financial flexibility being created by these dispositions. We expect to activate a second rig in late 2012, however, further ramp-up beyond this level will be determined upon completion of our upcoming budget review. Our full field development plan is well underway with completion expected in early Q4 2012.