Mr. Jonathan Wright reports

NUVISTA ENERGY LTD. ANNOUNCES OPERATIONAL UPDATE AND REAFFIRMS 2016 AND 2017 GUIDANCE

NuVista Energy Ltd. has had a number of updates that demonstrate successful execution of its 2016 plans and strong progress toward its plans for 2017 and beyond. Its full-year and fourth quarter 2016 guidance expectations have all been met or exceeded. As well, results and costs continue to improve and outperform. Specific highlights include the following:

Production update:

• Field-estimated production for the fourth quarter of 2016 was approximately 24,550 barrels of oil equivalent per day, exceeding the previously guided range of 23,500 to 24,500 boe per day. This figure includes downtime totalling 650 boe per day due to temporary mid-stream and downstream pipeline maintenance. Its full-year 2016 production estimate met the lower end of the original guidance range of 24,500 to 25,500 boe per day as expected, despite over 825 boe per day of various planned and unplanned third party restrictions encountered throughout the year and selling 3,200 boe per day of production associated with the W6 Sweet Cretaceous asset divestiture in June of 2016. These shortfalls were mostly offset by stronger-than-forecast well performance throughout the year and accelerated capital after the aforementioned asset sale.
• In December, field-estimated production exceeded 26,000 boe per day, which underpins a strong base entering 2017.

Operations update:

• The company is pleased to provide five new-well IP30s in the attached table. The company continues to be very encouraged by continuing results.

                          NEW-WELL IP30 RESULTS (1)

Well                       Raw gas     Condensate     Total sales     CGR C5+/raw
                           (MMcf/d)        (bbl/d)         (boe/d)      (bbl/MMcf)

Bilbo type curve (2)           5.8            435           1,361              75
Bilbo 8-25-65-6W6             11.2          1,646           3,278             146
Bilbo 12-22-65-6W6             5.8            667           1,521             115
Bilbo 13-22-65-6W6             4.1            540           1,133             132

Elmworth type curve (2)        7.4            333           1,559              45
Elmworth 13-33-68-8W6         10.0            585           2,145              58
Elmworth 14-33-68-8W6          8.3            274           1,586              33
                                                              
(1) Based on field-estimated production data.                 
(2) Type curves are based on NuVista's internal best estimates.

• Well costs are on track as the company continues to find efficiencies and drill faster. NuVista's 2016 capital program cost estimate is expected to be at or below the bottom of the full-year guidance range of $200-million to $215-million.

Other items:

• The company is entering 2017 with a very healthy balance sheet. NuVista's revolving credit facility was reconfirmed in November, 2016, at $200-million, underpinned by continued strong well results and a growing proven producing reserve base. The company entered 2017 completely undrawn on this facility.
• The company has continued to prudently add to its hedge positions for 2017 and 2018. It currently possesses hedges, which in aggregate cover 59 per cent of 2017 projected liquids production at an average floor price of $65.18 (Canadian) per barrel and 55 per cent of 2017 projected gas production at an average price of $3.26 (Canadian) per thousand cubic feet. Both of these percentage figures relate to production net of royalty volumes.

Outlook and guidance reaffirmed for 2017

Guidance for 2017 remains as previously announced with capital spending anticipated in the range of $260-million to $300-million and production expected in the range of 28,000 to 31,000 barrels of oil equivalent per day despite the planned five-year cycle-maintenance outages at the Simonette and K3 gas plants in 2017 causing a total negative annualized impact of approximately 3,000 boe per day, primarily in the second and third quarter. These outages have planned durations of four and five weeks, respectively, and existing crossover pipelines will be utilized during each outage to minimize the downtime impact by redirecting some production to other facilities. Due to some uncertainty on quarterly phasing of the outages, guidance is 26,000 to 29,000 boe per day for each of the first three quarters of 2017. The fourth quarter of 2017 is targeted to average 32,500 to 35,000 boe per day after the 2017 plant maintenance work is complete, an increase of approximately 40 per cent from fourth quarter 2016. The company will update phasing for the first three quarters of 2017 as outage dates and durations become final.

November was unusually warm and wet in the Wapiti and Grande Prairie area. This caused poor road and lease conditions, preventing the moving of drilling rigs and heavy equipment. As a result of commencing the winter activity ramp-up approximately one month late, the company had to modify its plans to temporarily add one extra rig to finish its winter drilling program prior to the spring breakup season. As a result, NuVista is currently drilling with five rigs, and its schedule is back on track. The company expects to bring approximately five new development wells on production in Wapiti during the first quarter of 2017 as per the company's original expectations. The company anticipates drilling approximately 12 to 15 wells during the first quarter of 2017.

NuVista has top-quality assets and a management team focused upon relentless improvement. It is excited to continue pursuing its five-year growth plan to 60,000 barrels of oil equivalent per day. The company would like to thank its staff, contractors and suppliers for their continued dedication and delivery, and it thanks its board of directors and its shareholders for their continued guidance and support. Please note that its corporate presentation is being updated and will be available at the company's website on Jan. 17, 2017.

We seek Safe Harbor.