Mr. Jonathan Wright reports

NUVISTA ENERGY LTD. ANNOUNCES FOURTH QUARTER AND YEAR END 2013 RESULTS

NuVista Energy Ltd. has released results for the three and 12 months ended Dec. 31, 2013, and has provided an update on its future business plans. Two thousand thirteen was a turning point year for NuVista, and one where all of the company's key business and strategic targets were met or exceeded.

• Transitioned the Bilbo (South) and Elmworth (North) subblocks of Wapiti Montney play from delineation phase to full repeatable development;
• Continued successful delineation and land expiry management program in the Wapiti area;
• Continued rolling annual non-core divestiture program toward ever-enhanced focus;
• Significantly increased natural gas and natural gas liquids reserves and contingent resources;
• Substantially increased condensate yields in the Wapiti Montney play;
• Reduced well costs and cycle times, using advanced technology to improve drilling and completion execution;
• Created a clearer than ever line of sight to increasing Wapiti Montney type curves and future growth initiatives;
• Improved corporate netbacks and prudently managed balance sheet.

All of the above placed NuVista in a position where the company's growth outlook and financial strength have never been brighter. Although the company expects stronger gas pricing to prevail, it has positioned the company to provide strong long-term profitable growth in an AECO natural gas price environment of $3 to $3.50 per gigajoule due to significant and high-value condensate production. The fiscal environment has improved significantly due to the recent gas price increase in late 2013 and early 2014. There is a high probability this strength will continue throughout 2014 due to very low gas storage levels in North America, driven by the cold winter experienced in most regions. As a result of the recent price strength, the company has increased its hedge positions to ensure a strong baseline price underpinning its capital plans and economic threshold. Beyond 2014, the company expects natural gas prices to moderate but retain a higher base compared with the environment of 2012 and 2013. In this environment NuVista is in an excellent position to grow and thrive.

As the company kicks off 2014, its key strategies are centred upon rapid profitable Wapiti Montney development, continued delineation drilling, the completion and start-up of its South Bilbo block compressor station, and the new Keyera pipeline to the Simonette plant late in the second quarter of 2014. The company will continue to enhance its focus through its non-core asset divestiture program and improve profitability as its higher netback Montney production increases. The company is very pleased to reach yet another turning point -- where increasing cash flow and profitability provides the ability to grow on a self-financing basis in an AECO gas price environment of $3 to $3.50 per gigajoule, with any dependency on outside financing being merely related to the optionality of choosing an accelerated pace of growth.

Significant highlights for the fourth quarter and full year of 2013 include:

• Continued to reach IP30s on additional Montney wells since last announcement on Feb. 6, 2014, including another Bilbo (South) block test with excellent results as shown in the associated table;
• Well 17, a new record high result, at the far southwestern end of the Bilbo block resulting in strong encouragement as two strongest Bilbo wells bracket the northeast and southwest edges of the block.

                               NEW WELL IP30 RESULTS 
                                                                         CGR
Well                    Raw gas     Condensate    Total sales    C5 plus/raw
                       (mmcf/d)        (bbl/d)        (boe/d)     (bbl/mmcf)
Bilbo (south
blk) type curve             5.8            435          1,361             75
Well 17                     8.0            800          2,184            100
North block
type curve                  5.8            261          1,222             45
Well 18                     5.9            217          1,201             37
   

• Increased Elmworth (North) block type curve assumptions from an ultimate recovery of 4.4 billion cubic feet per well to six billion cubic feet per well;
• Achieved the higher end of annual guidance range; for the fourth quarter of 2013, average production of 18,034 barrels of oil equivalent per day (boe/d) compared with average production of 17,692 boe/d for the fourth quarter of 2012 and 18,532 boe/d for the third quarter of 2013; increase in production from the fourth quarter of 2012 due to strong performance of new and existing Wapiti Montney wells offset by the sale of production as a result of 2012 and 2013 non-core dispositions;
• Achieved funds from operations of $21.5-million (17 cents per share, basic) for the three months ended Dec. 31, 2013, a 32-per-cent increase from $16.3-million (15 cents per share, basic) for the three months ended Dec. 31, 2012, due to stronger pricing and an increased contribution of higher netback Wapiti Montney volumes; for the year ended Dec. 31, 2013, funds from operations of $75.3-million (63 cents per share, basic), a slight decrease from $75.7-million (75 cents per share, basic) in the same period of 2012 due to lower oil prices and divestitures offset by higher natural gas prices;
• Achieved corporate netbacks for the 12 months ended Dec. 31, 2013, of $12.99 per boe and $11.91 per boe for the three months ended Dec. 31, 2013; netbacks expected to continue rising as the higher netback Wapiti Montney production increasingly dominates corporate production;
• Successfully executed an annual capital program of $224-million; drilled 16 wells (15.6 net) in Montney condensate-rich resource play for 100-per-cent success rate while initiating spending on Bilbo block compressor station and trunk lines;
• Entered into significant firm processing contracts, strategically providing Wapiti Montney play with space to grow to at least 2016, with reduced operating cost and guaranteed downstream liquids fractionation access;
• Increased proved plus probable reserves (2P) by 48 per cent versus 2012, to 129 million boe (up 64 per cent excluding the effect of divested volumes) thereby increasing proved plus probable reserves life index from 14.6 to 22.2 years; organic 2P reserves additions replacing 950 per cent of production in the year;
• Increased Montney 2P operating recycle ratio to 2.3 times with full-year Montney operating netbacks of $27.88 per boe and Montney 2P finding and development costs (F&D) of $12.05 per boe;
• Continued trend of efficiency improvements, with average well drilling and completion costs, as well as well cycle times falling significantly;
• Ensured capital programs are financed through until at least 2015 or longer depending on the pace of capital spending, through a combination of rolling divestitures, improved cash flows, and equity issued in 2013;
• Completed the disposition of certain gross overriding royalty volumes, undeveloped land and non-core assets producing 1,800 boe/d in W3/W4 operating areas for gross proceeds of $43.4-million;
• Exited 2013 with no bank debt; net debt, including the working capital deficiency of $48-million and net debt to annualized fourth quarter funds from operations of 0.6 times.

As noted above, on the strength of Elmworth (North) block out performance from wells drilled in 2011 to 2013 and even stronger IP30 production results from recently drilled Elmworth block wells and nearby industry wells, the company has increased its internal type curve assumptions to six billion cubic feet per well ultimate recovery compared with original type curve assumption of 4.4 billion cubic feet per well. The condensate yield for this area remains unchanged at 45 barrels per one million cubic feet but the higher overall production results in very strong economics. This recovery applies to the Elmworth block only until more proof points are established on other blocks, and it corresponds to initial IP30 rates of 7.4 million cubic feet per day compared with the company's original type curve assumption of 5.8 million cubic feet per day. The company is very pleased to now have demonstrated proof of this trend which it believes is the natural evolution of a repeatable resource play where drilling and completions techniques can be optimized over time.

                             CORPORATE HIGHLIGHTS
                         (In thousands, except per share)
   
                                         Three months ended               Year ended
                                                   Dec. 31,                 Dec. 31,
                                            2013       2012       2013          2012
Financial
Oil and natural gas revenue              $57,143    $48,277   $213,469      $242,012
Funds from operations                     21,533     16,278     75,306        75,672
Per basic share                             0.17       0.15       0.63          0.75
Per diluted share                           0.17       0.15       0.63          0.75
Net earnings (loss)                     (47,405)   (59,042)   (61,144)     (195,200)
Per basic share (loss)                    (0.38)     (0.56)     (0.51)        (1.93)
Per diluted share (loss)                  (0.38)     (0.56)     (0.51)        (1.93)
Adjusted net earnings (loss)             (4,245)   (10,920)   (20,133)      (52,462)
Per basic share (loss)                    (0.03)     (0.10)     (0.17)        (0.52)
Per diluted share (loss)                  (0.03)     (0.10)     (0.17)        (0.52)
Total assets                                                   905,711       878,174
Long-term debt, net of adjusted
working capital                                                 47,495        30,388
Capital expenditures                      80,011     29,194    226,572       116,638
Dispositions                              17,878    204,771     30,270       237,821
Operating
Production
Natural gas (mmcf/d)                        73.9       74.9       71.8          95.0
Condensate (bbl/d)                         2,500        954      1,925         1,245
Butane (bbl/d)                               482        527        458           534
Propane (bbl/d)                              712        712        710           722
Ethane (bbl/d)                               744        746        801           700
Oil (bbl/d)                                1,280      2,278      1,478         3,542
Total oil equivalent (boe/d)              18,034     17,692     17,329        22,577
Average product prices
Natural gas ($/mcf)                         3.40       2.79       3.28          2.35
Condensate ($/bbl)                         85.26     115.01      93.27         97.46
Butane ($/bbl)                             58.34      63.11      58.62         67.29
Propane ($/bbl)                            40.51      25.75      28.16         26.99
Ethane ($/bbl)                             10.91       4.30       9.42          7.60
Oil ($/bbl)                                71.46      66.35      78.48         72.11
Operating expenses
Natural gas and natural gas
liquids ($/mcfe)                            1.67       1.78       1.78          1.87
Oil ($/bbl)                                26.31      15.53      22.65         11.00
Total oil equivalent ($/boe)               11.16      11.29      11.70         11.17
Operating netback ($/boe)                  17.99      14.82      16.54         13.36
Funds from operations netback
($/boe)                                    12.99      10.00      11.91          9.16

2014 guidance

Two thousand fourteen is the year where NuVista will enter full development mode in the Wapiti Montney resource play. It has increased its capital budget in 2014 compared with 2013, to the range of $240-million to $260-million with a commensurate increase in rig count to three rigs for most of the year. The capital will be focused approximately 90 per cent in the Wapiti area, with approximately 80 per cent of that in the condensate-rich Bilbo development block. The company expects to drill and complete 16 to 18 horizontal wells in the year, complete and start up the Bilbo compressor station, and begin delivering to the Keyera Simonette plant late in the second quarter of 2014. This new infrastructure will provide the capacity for significant growth over the next few years.

The company's entrance production rate in 2014 after the previously announced December divestitures was approximately 16,500 boe/d. Production for 2014 is expected to be in the range of 17,500 to 18,500 boe/d. Behind pipe capacity is continuing to build in order to accommodate the ramp in infrastructure capacity later in the year, with fourth quarter production expected in the range of 20,000 to 21,000 boe/d. Cash flows for 2014 are expected in the range of $130-million to $140-million based on current strip prices of $4.50 per gigajoule AECO for natural gas and $98 (U.S.) per barrel for WTI.

Looking beyond 2014, the company is excited about its ability to drive and internally finance significant growth with an increased pace of drilling and significant facility capacity. For 2015, the company anticipates annual production of approximately 23,000 boe/d which, at $3.50 per gigajoule AECO gas and $85 (U.S.) per barrel WTI oil prices, would drive cash flow to approximately $170-million.

With corporate netbacks and production rising quickly, and efficiencies continuing to be built into every aspect of the company's Wapiti Montney play, NuVista is confident to continue accelerating the pace of activity in the future. It will continue to work with area mid-streamers to provide an ever-increasing facility capacity to underpin long-term profitable growth. The company would like to thank its shareholders for their continued support, and its exceptionally dedicated and talented staff for their significant contributions to the bright future the company is delivering together.

Please refer to the corporate presentation on the company's website which will be updated on or before the end of March 10, 2014, to include further details and context regarding the information in this press release.

Consolidated financial statements and MD&A

Dec. 31, 2013, audited consolidated financial statements and notes to the consolidated financial statements and management's discussion and analysis for NuVista Energy have been filed on SEDAR under NuVista Energy and can also be accessed on NuVista's website.

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