2009-08-11-2008-02-01

To buy co., gaining assets in West Pembina, Ferrier, Sunchild, Edson, Waskahigan with 77% average WI in 155,000+ net undeveloped acres, 75 drill sites. Proved 33 MMBOE; production 11,500 BOE/d (77% gas).

NuVista Energy Ltd., Calgary, (Toronto: NVA) plans to acquire Rider Resources Ltd., Calgary, (Toronto: RRZ) for C$560 million. NuVista will pay 0.354 share per Rider share for a value of C$5.07 each based on the closing price on Jan. 4, a 25% premium. Riders assets are in west-central Alberta in West Pembina, Ferrier, Sunchild, Edson and Waskahigan. Proved reserves are 33 million barrels of oil equivalent with production of 11,500 barrels equivalent per day (77% gas). Assets include a 77% average working interest in more than 155,000 net acres of undeveloped land plus 75 identified drilling locations. The deal is valued at C$18.35 per proved plus probable barrel equivalent, according to NuVista. Pro forma, NuVista will have a market capitalization of C$1.1 billion with proved plus probable reserves of 70 million barrels equivalent. Estimated production will be 26,500 barrels equivalent per day with 750,000 net undeveloped acres (77% average working interest). NuVista plans to fund the acquisition with an C$84-million private placement by the Ontario Teachers' Pension Plan, which will subscribe for 6 million NuVista units for C$14 each plus 0.5 share purchase warrant. Each warrant is exercisable for C$15.50 after one year. OTTP will own approximately 14% of NuVista. NuVista operates in eastern Alberta and western Saskatchewan. The closing is expected in March.