NuVista Energy has divested three natural gas properties located in the Wapiti area in Alberta’s Deep Basin for approximately $236m.

NuVista claims the divestment will improve its financial flexibility and create sustainable organic growth and shareholder value.

Assets include a large portion of NuVista’s W5 natural gas assets plus selected W4 heavy oil assets. Specific assets include Ferrier, Alder Flats and Easyford in the W5 operating area and Chauvin, Auburndale and Wildmere in the W4 operating area.

The company has entered in three separate asset purchase and sale agreements for the divestitures and intends to complete all three transactions by early October 2012.

NuVista Energy has retained Fir/Waskahigan liquids-rich gas areas in the W5 operating area.

Based on field estimates, the specific assets in the disposition consists of 4,975 Boe/d of natural gas, 1,125 Bbls/d of heavy oil, 925 Bbls/d of natural gas liquids, and 175 Bbls/d of light oil.

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The net proceeds will initially be used to reduce the company’s outstanding bank debt as it plans to focus on its condensate-rich Alberta Montney gas play in the Wapiti area.

BMO Capital Markets has acted as financial advisor for the asset sale.

In other operational updates, the company’s five well pilot and delineation programme has been complete.

All wells have been tested and results previously released. Only the fifth well remains to be tied in and is expected to be brought on stream in September 2012.

In addition to the rig already delineation drilling steadily on the project, the company plans to employ a second rig in late 2012. Its complete field development plan is also expected this year.