As part of the deal, NuVista will receive $25.2m in cash and a $5m interest bearing secondary charge debenture with a three year term.
The divested assets comprise Northwest Saskatchewan natural gas area and West Central Saskatchewan and Provost heavy oil areas in Canada.
Current average production from the divested assets is around 1,800boe/d, which includes about 6.5 MMcf/d of natural gas and 715boe/d of heavy oil.
The company plans to use the proceeds from transaction to reduce outstanding bank debt and invest in Wapiti Montney play.
The transaction, which is expected to complete in December, is subject to financing and customary industry closing terms and conditions.
The net proceeds from this transaction will initially be used to reduce outstanding bank debt, then ultimately re-deployed into profitable investment in the company’s Wapiti Montney play.
