NuVista Energy Ltd. announced a number of updates which demonstrate continued successful advancement of Pipestone and Wapiti Montney play development. Operations Update: The NuVista operated Pipestone South Compressor Station has performed with high reliability since commencing operations late in the third quarter of 2019. After initial testing, the 11 new wells at Pipestone have been operating tubing-restricted with minimal production decline since early in the fourth quarter of 2019. Production is only now beginning to decline as expected, as wells reach line pressure. The company noted that Pipestone South production on full run-time days continues to average approximately 10,500 Boe/d including approximately 36% condensate. At the end of 2019, all 11 wells reached IP60 and are performing in accordance with management's type curve expectations (table included below). The wells averaged 1,370 Boe/d including 515 Bbls/d of condensate which is precisely in-line with ‘Rich' type curve expectation. However, these first wells are 33% shorter (at 2,070m) for land use/geographic reasons than the length of wells used for the ‘Rich' type curve. The cost to drill, complete, equip, and tie in (“DCET”) these wells was on average 30% below the original type curve expectation, at $6.6MM per well. In addition it is important to note that all four benches within the Montney, including the Lower Montney have exhibited prolific production levels and have, in aggregate, slightly exceeded expectation for average condensate yields at 78 Bbls/MMcf. Currently, the company is drilling at Bilbo (2-well pad), Gold Creek (3-well pad), Elmworth (4-well pad), and Pipestone North (12 well pad). During the fourth quarter of 2019, NuVista successfully drilled the next pad at Pipestone South and completion operations have already begun on these 6 wells. Most of the wells with the exception of Pipestone North are expected to be completed and started up prior to the spring breakup period of 2020. The Pipestone North pad is expected to be completed and started up in the mid-fourth quarter of 2020 commensurate with the startup of the new Pipestone North Compressor Station and the new pipeline and Hythe Gas Plant expansion being constructed by Veresen Midstream Limited Partnership (“VMLP”). NuVista commenced construction of this new compressor facility in the fourth quarter of 2019 and all major project milestones are currently on budget and on schedule. The facility will ultimately be capable of approximately 25,000 Boe/d with initial Phase 1 2020 capacity of approximately 12,500 Boe/d. NuVista Energy is the builder and contract operator of this facility and will pay a capital fee to VMLP who is the facility owner. NuVista Energy to report continued strong progress on water source, storage and disposal infrastructure projects in Pipestone North. These projects underpin low cost operations with minimum trucking traffic for reduced GHG emissions, reduced surface fresh water usage and diminished community noise in accordance with ESG initiatives.

The company reported that in the fourth quarter of 2019 company achieved record production with the commencement of Pipestone South production, reaching an average of approximately 57,000 Boe/d. This result represents a production increase of 10% and 16% compared to the prior quarter and the fourth quarter of 2018, respectively.

Annual 2019 NuVista production averaged approximately 50,800 Boe/d.

The company reaffirmed all of 2020 plans including previous guidance. The company expectation for annual production is 57,000 to 61,000 Boe/d, representing over 15% annual growth. The company expects the first quarter to be affected by the weather-related late start to winter drilling, required temporary shut-ins for offset fracture treatments on the new Pipestone and other wells, and third party downtime on a diminishing basis. Production splits between the first and second quarter are difficult to define as they will be sensitive to on-stream dates of the 15 new wells that are planned to come on stream throughout March and April, spanning the quarters. This is not expected to affect overall first half production which is anticipated to average approximately 56,000 Boe/d. The first quarter is expected to average in the range of 50,000 – 54,000 Boe/d and the second quarter in the range of 58,000 – 62,000 Boe/d.