Nexstar Energy Ltd.
TSX VENTURE : NXE.A
TSX VENTURE : NXE.B

Nexstar Energy Ltd.

June 02, 2009 08:30 ET

Nexstar Energy Releases First Quarter Results and Provides Operational Update

CALGARY, ALBERTA--(Marketwire - June 2, 2009) - Nexstar Energy Ltd. ("Nexstar" or the "Company") (TSX VENTURE:NXE.A) (TSX VENTURE:NXE.B) announces its first quarter results for the three months ending March 31, 2009. The Unaudited Financial Statements and Management's Discussion and Analysis ("MD&A") for the quarter should be read in conjunction with the Audited Financial Statements and the MD&A for the year ended December 31, 2008, all of which are filed and now available for viewing on the System for Electronic Disclosure and Analysis ("SEDAR") at www.sedar.com. The Company also advises that its corporate presentation has been updated on its website at www.nexstar-energy.com.

Operational Update

The Company announces updated production results from its recently drilled exploratory Cardium horizontal well operated by Bonterra Oil and Gas Ltd. ("Bonterra") in the Pembina area of west central Alberta. This farmin earning well has produced a total of 23,000 barrels of light oil in 118 days and is currently producing approximately 140 barrels of oil equivalent per day. The Company holds a 31.82% working interest in the well which has been designated as a new pool well by the Alberta Energy Resources Conservation Board ("ERCB") and been granted a Good Production Practice exemption by the ERCB.

The Company presently owns an average 28% working interest in ten sections of undeveloped lands in the Pembina area with a further five sections controlled under various option agreements. The Company, and its joint venture partner Bonterra, plan to drill a second Cardium horizontal well within the next 30 days, subject to surface access. This development well will target a reservoir similar to that encountered in the initial discovery well. The Company anticipates participating in the drilling of additional horizontal Cardium wells in the Pembina area in 2009 in order to further evaluate the potential of the Cardium play.

About Nexstar Energy

Nexstar Energy is a newly reorganized junior oil and gas company that is focused on drilling multi-zone oil and natural gas prospects in western Canada, complemented by strategic acquisitions.

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.

Disclosure provided herein in respect of barrel(s) of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

28,632,869 Class A Shares

1,080,000 Class B Shares

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)
    or
    Nexstar Energy Ltd.
    Brian J. Spilchen
    VP Finance and CFO
    (403) 263-6133 ext. 202
    (403) 263-3629 (FAX)
    or
    Nexstar Energy Ltd.
    603 - 7 Avenue SW, Suite 525
    Calgary, Alberta T2P 2T5
    Email: info@nexstar-energy.com
    Website: www.nexstar-energy.com