Nexstar Energy Ltd.

Nexstar Energy Ltd.

November 24, 2009 08:30 ET

Nexstar Energy Increases Bank Facility and Provides Operations and Corporate Update

CALGARY, ALBERTA--(Marketwire - Nov. 24, 2009) - Nexstar Energy Ltd. ("Nexstar Energy" or the "Company") (TSX VENTURE:NXE.A) (TSX VENTURE:NXE.B) is pleased to provide a corporate update and reports on developments with respect to its horizontal Cardium light oil exploration and development program in the Pembina area of west central Alberta.

Bank Facilities Expanded and Warrants Exercised

  • The Company has entered into expanded credit facilities (the "Credit Facilities") with its major lender which provide for a revolving operating demand loan of up to $4.0 million and an acquisition/development demand loan of up to $1.2 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 advises that a further 13,200,000 Class A Shares have recently been issued as a result of the exercise of warrants and the number of issued and outstanding Class A Shares of the Company has been increased to 110,811,169. Proceeds of $660,000 were received by the Company from the exercise of these warrants.
  • A total of 4 million warrants remain outstanding with an exercise price of $0.10 and an expiry date of November 21, 2010.

 East Pembina Project

  • The Company reports that it has interests in four Cardium oil wells (net 1.27) producing at a combined gross rate of approximately 550 boepd (net 175 boepd) with no water.
  • A fifth well (net .31) has been fracture stimulated, is currently being tested and is expected to be on production in mid-December.
  • The sixth well (net .31) in the Company's development program is currently drilling in the Cardium zone.
  • Two additional wells are planned for East Pembina later this year or in Q1 2010.

 West Pembina Project

  • The first well (net .25) in the Company's West Pembina project area has been drilled with a 1100 meter lateral section and is expected to be fracture stimulated and production tested later this month.
  • Initial field operations are underway for an additional 2 wells planned for drilling in early 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.

110,811,169 Class A Shares

1,080,000 Class B 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.

Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl 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