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NOVA CORP. TO SELL GAS PRODUCTION SUBSIDIARY

 CALGARY, Alberta, Sept. 10 /PRNewswire/ -- NOVA Corp. of Alberta announced today that Novalta Resources Inc., an indirect subsidiary, will be offered for sale. Novalta is an Alberta-based natural gas production company. Virtually all of Novalta's 364 billion cubic feet (bcf) of proved gas reserves (estimated at July 1, 1993) are in the province of Alberta. Novalta also has estimated proved oil and gas liquids reserves totaling 4.6 million barrels. In the first six months of 1993, Novalta's average gas production was 70 million cubic feet per day.
 "Historically, NOVA has seen the primary value of Novalta as a partial hedge against increases in natural gas feedstock costs for its Alberta-based petrochemicals businesses," said J.E. (John) Feick, NOVA senior vice president. "We believe we can capture that value for NOVA's shareholders now with the sale of Novalta."
 NOVA perceives the current environment for selling natural gas properties to be favorable, which spurred the timing of the divestment decision.
 "Novalta's focus on natural gas production, its cash flow, its debt- free position and land holdings in key areas in Alberta make it a very attractive acquisition prospect to companies with active exploration programs" added Feick. "We are confident Novalta can be a good fit in another company's investment portfolio."
 Burns Fry Ltd. and PowerWest Financial Ltd. will assist NOVA in finding interested purchasers for Novalta.
 -0- 9/10/93
 /CONTACT: A.T. (Terry) Poole, VP and Controller, 403-290-7714, or, W.N. (Bill) Rowe, Investor Relations, 403-290-7807, or, P.J. (Jeff) Flood, Public Affairs, 403-290-7657/


CO: NOVA Corp. of Alberta; Novalta Resources Inc. ST: Alberta IN: OIL SU:

LM-xx -- LA020 -- 0942 09/10/93 17:41 EDT
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Publication:PR Newswire
Date:Sep 10, 1993
Words:276
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