NuVista Energy Ltd. Announces Closing of Strategic Funding Initiatives

CALGARY, ALBERTA -- (Marketwired) -- 06/28/16 -- NuVista Energy Ltd. ("NuVista" or the "Company") (TSX: NVA) is pleased to announce that it has closed its previously announced funding initiatives taken to increase growth, value, and liquidity for the remainder of 2016 and 2017. These steps include the sale of our W6 Deep Basin Non-Montney Assets ("W6 Assets"), the issuance of senior unsecured notes ("Senior Notes") and completion of a flow through share offering (the "Offering"). The details of which are outlined below:

--  The W6 Asset disposition closed on June 17, 2016 for cash proceeds after
    adjustments of approximately $69 million ($70 million before
    adjustments) which also included the receipt by NuVista of certain
    Wapiti area Montney lands;

--  The Senior Notes were issued on June 22, 2016 for net proceeds of
    approximately $67 million; and

--  On June 28, 2016, we completed the private placement of 3,252,411 common
    shares for total net proceeds of approximately $21.5 million. The shares
    were issued on a "flow through" basis in respect of Canadian Development
    Expenses pursuant to the Income Tax Act (Canada) at a price of $6.65 per
    share. In addition, of the total common shares issued, 92,000 common
    shares were acquired by certain directors, officers and employees of the
    Company on a non-brokered, "flow through" basis on the same terms.

The total net proceeds from these transactions of approximately $158 million were used to initially pay down our bank debt. As at June 30, 2016, the total amount drawn on our current $200 million credit facility is forecasted to be $90 million or 45% drawn.

INVESTOR INFORMATION

NuVista is an independent Canadian oil and natural gas exploration, development and production company with its Common Shares trading on the Toronto Stock Exchange under the symbol "NVA". NuVista's primary focus is on the scalable and repeatable condensate-rich Montney formation in the Alberta Deep Basin (Wapiti Montney).

ADVISORY REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS

This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities laws. The use of any of the words "will", "expects", "believe", "plans", "potential" and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this press release contains forward looking statements and information concerning: the benefits to be obtained by NuVista from these funding initiatives including increased growth, value, and liquidity for the remainder of 2016 and 2017 and the forecasted amount drawn on NuVista's credit facility.

Forward-looking statements regarding NuVista are based on certain key expectations and assumptions of NuVista concerning anticipated financial performance, business prospects, strategies, regulatory developments, current and future commodity prices and exchange rates, applicable royalty rates, tax laws, future well production rates and reserve volumes, future operating costs, the performance of existing and future wells, the success of exploration and development activities, the sufficiency and timing of budgeted capital expenditures in carrying out planned activities, the availability and cost of labor and services, the impact of increasing competition, conditions in general economic and financial markets, availability of drilling and related equipment, effects of regulation by governmental agencies, the ability to obtain financing on acceptable terms which are subject to change based on commodity prices, market conditions, drilling success and potential timing delays.

These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond NuVista's control. Such risks and uncertainties include, without limitation: the impact of general economic conditions; volatility in market prices for crude oil and natural gas; industry conditions; currency fluctuations; imprecision of reserve estimates; liabilities inherent in crude oil and natural gas operations; environmental risks; incorrect assessments of the value of acquisitions and exploration and development programs; competition from other producers; the lack of availability of qualified personnel, drilling rigs or other services; changes in income tax laws or changes in royalty rates and incentive programs relating to the oil and gas industry; hazards such as fire, explosion, blowouts, and spills, each of which could result in substantial damage to wells, production facilities, other property and the environment or in personal injury; ability to access sufficient capital from internal and external sources; and include, without limitation, those risks considered under "Risk Factors" in our Annual Information Form.

Contacts:
NuVista Energy Ltd.
Jonathan Wright
President and CEO
[phone]

NuVista Energy Ltd.
Ross Andreachuk
VP, Finance and CFO
[phone]