Nexstar Energy Ltd.

Nexstar Energy Ltd.

January 19, 2010 08:30 ET

Nexstar Energy Announces Special Meeting for Arrangement With Result Energy and Other Corporate Information

CALGARY, ALBERTA--(Marketwire - Jan. 19, 2010) - Nexstar Energy Ltd. ("Nexstar" or the "Company") (TSX VENTURE:NXE.A) announces that a special meeting of the shareholders of the Company has been scheduled for Tuesday, February 16, 2010 at 10:00 a.m. (Calgary time) at the offices of Burstall Winger LLP, to approve the previously announced Arrangement with Result Energy Inc. The record date for the meeting is January 14, 2010 and the Information Circular for the meeting will be mailed to all Nexstar shareholders today. On January 15, 2010, the Company received an Interim Order from the Court of Queen's Bench of Alberta setting out the process for the Arrangement. In conjunction with the filing of the Information Circular for the Arrangement, the Company also filed amended and restated unaudited financial statements (the "Financial Statements") and management's discussion and analysis (MD&A) for the three and nine months ended September 30, 2009 on SEDAR at The Financial Statements and MD&A were primarily amended to reflect minor reconciliations with respect to accretion expense and future income taxes.

The Company also announces that it has had its reserves re-evaluated as at October 31, 2009. In accordance with National Instrument 51-101, Sproule Associates Limited ("Sproule") independently prepared the Company's Sproule Reserve Report (the "Sproule Report") which evaluated substantially all of the Company's oil, natural gas and liquids reserves as at October 31, 2009. The Company has filed a statement of reserves data and other oil and gas information pursuant to National Instrument 51-101, which statement is available for public viewing on SEDAR at

The Company also advises that it has entered into expanded credit facilities (the "Credit Facilities") with its major lender which provide for a revolving operating demand loan of up to $6.0 million and an acquisition/development demand loan of up to $1.8 million. The proceeds from the expanded Credit Facilities will be used to fund the ongoing development of the Company's oil properties and for general corporate purposes.

The Company also reports that it now has interests in nine (9) Cardium oil wells (net 2.98) of which seven (7) are currently on production and producing net to the Company at a rate in excess of 235 boepd with no water. The Company also advises that of the two (2) other wells in Pembina, one (1) is being completed and will be placed on production within 10 days and the previously announced well (net 0.25) located at 8-16-48-W5M will be tied-in for production early next month after construction of a solution gas pipeline. Four (4) additional wells are anticipated for the Company's Pembina property in Q1 2010.

About Nexstar Energy

Nexstar Energy is an emerging junior oil and gas company focused on the horizontal drilling and development of its Cardium light oil prospects in the Pembina area of west central Alberta.
For further information, please go to Nexstar Energy's updated website.

121,611,169 Class A Shares

Reader Advisory

This news release may contain certain forward-looking statements, which include assumptions with respect to (i) production; (ii) future capital expenditures; (iii) funds from operations; (iv) cash flow; and (v) debt levels. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and natural gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits, including the amount of proceeds, the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

The terms bbls, bbls/d, boe, boes or boes/d may be misleading, particularly if used in isolation. A boe (barrel of oil equivalent) conversion ratio of 6 mcf per one (1) boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Nexstar Energy Ltd.
    Peter A. Carwardine
    President and CEO
    (403) 263-6133 ext. 201
    (403) 263-3629 (FAX)
    Nexstar Energy Ltd.
    Brian J. Spilchen
    VP Finance and CFO
    (403) 263-6133 ext. 202
    (403) 263-3629 (FAX)
    Nexstar Energy Ltd.
    603 - 7 Avenue SW, Suite 525
    Calgary, Alberta T2P 2T5