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Novus Energy Inc. enters into definitive agreement to be acquired by Yanchang Petroleum International Limited
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Novus Energy Inc. (TSXV:NVS)
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Today : Wednesday 4 September 2013
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/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S./
CALGARY, Sept. 3, 2013 /CNW/ - Novus Energy Inc. ("Novus" or the "Company") (TSXV: NVS) is pleased to announce that it has entered into a definitive agreement (the "Arrangement Agreement") with Yanchang Petroleum International Limited ("Yanchang Petroleum International") and Yanchang International (Canada) Limited ("Yanchang Canada", and, together with Yanchang Petroleum International, the "Purchaser Parties") for the purchase of all of the issued and outstanding common shares of the Company (the "Common Shares") at a cash price of C$1.18 per Common Share. The total transaction value, including net debt and transaction costs, is approximately C$320 million. The transaction is to be completed by way of a plan of arrangement under the Business Corporations Act (Alberta) (the "Arrangement"). The consideration offered for the Common Shares pursuant to the Arrangement represents a 40% premium over the closing price of the Common Shares on the TSX Venture Exchange on August 27, 2013, the last trading day of the Common Shares prior to the subsequent halt thereof, and a 44% premium over the 1-month volume weighted average trading price of the Common Shares on the TSX Venture Exchange.
Yanchang Canada, formed for the purpose of completing the Arrangement, is wholly owned by Yanchang Petroleum International (Hong Kong Stock Code: 00346). Yanchang Petroleum International is a Hong Kong listed public company and is principally engaged in the exploration, exploitation and operation of oil and gas fields and refined oil wholesale and retail businesses. Shaanxi Yanchang Petroleum (Group) Co., Limited ("Yanchang Petroleum Group"), the fourth largest oil producer in China with more than 100 years of history, is the largest shareholder of Yanchang Petroleum International and has majority representation on the Board of Directors of Yanchang Petroleum International. In 2012, Yanchang Petroleum Group achieved annual revenue of RMB 162 billion (approximately US$25 billion) and is the largest enterprise in Shaanxi province in terms of annual revenue.
The Arrangement
The Arrangement is subject to customary conditions for a transaction of this nature, which include court and regulatory approvals, the approval of 66 2/3% of the votes cast by Novus shareholders represented in person or by proxy at a meeting of Novus shareholders to be called to consider the Arrangement and a simple majority of votes cast by Novus shareholders represented in person or by proxy and entitled to vote after excluding the votes required by Multilateral Instrument 61-101 and approval of the TSX Venture Exchange. The Arrangement also requires a simple majority of votes cast by Yanchang Petroleum International's shareholders, in person or by proxy, at a meeting to be called to consider the Arrangement.
The Arrangement is subject to approval by the State-owned Assets Supervision and Administration Commission of the State Council ("SASAC") of the People's Republic of China, and other customary approvals from governmental entities in the People's Republic of China. The Arrangement is conditional upon Yanchang Petroleum International finalizing financing arrangements.
On August 28, 2013, Yanchang Petroleum International entered into a subscription agreement with Yanchang Petroleum Group (Hong Kong) Co., Limited ("Yanchang Petroleum HK") (a wholly-owned subsidiary of Yanchang Petroleum Group), pursuant to which Yanchang Petroleum HK has conditionally agreed to subscribe for and Yanchang Petroleum International has conditionally agreed to issue a convertible bond in the aggregate principal amount of HK$1,600,000,000 (approximately C$217 million). The proceeds from the issuance of the convertible bond will provide additional financing for the Arrangement. In addition, Yanchang Petroleum Group has indicated its willingness to provide additional financial support to complete the financing in the event it is required by Yanchang Petroleum International.
An information circular regarding the Arrangement is expected to be mailed to shareholders of Novus in October 2013 for an annual and special meeting of the holders of Common Shares scheduled to take place in November 2013. Closing of the Arrangement is expected to occur prior to the end of December 2013, subject to extension in certain circumstances.
The Company has agreed in the Arrangement Agreement that it will not solicit or initiate discussions regarding any other business combination or sale of material assets. The Company has also granted the Purchaser Parties a right to match competing unsolicited proposals. Pursuant to the Arrangement Agreement, a termination fee of C$10 million will be payable by the Company in certain circumstances, including if the Company enters into an agreement with respect to a superior proposal or if the Board of Directors of the Company withdraws or modifies its recommendation with respect to the proposed transaction. In addition, a termination fee of C$5 million will be payable to the Company if the Arrangement is not completed due to failure to obtain required approvals of governmental bodies in the People's Republic of China or if Yanchang Petroleum Group, as the major shareholder of Yanchang Petroleum International, fails to vote in favour of the Arrangement at the meeting of Yanchang Petroleum International's shareholders. Furthermore, a termination fee of C$7.5 million will be payable to the Company if the Arrangement is not completed due to the failure by the Purchaser Parties to obtain required financing for the Arrangement.
A copy of the Arrangement Agreement will be filed on Novus' SEDAR profile and will be available for viewing at www.sedar.com.
Recommendation of the Board of Directors
On December 4, 2012, Novus announced it had retained financial advisors to assist the Special Committee of the Board of Directors in exploring and evaluating a broad range of options to optimize shareholder value. Technical presentations commenced during the third week of January 2013 for interested and qualified parties who had entered into a confidentiality agreement with Novus. Following an extensive review and analysis of the proposed transaction and consideration of other available alternatives, the Board of Directors of Novus, after consulting with its financial and legal advisors, has unanimously approved the Arrangement and unanimously determined that the transaction is in the best interests of Novus. The Board of Directors of Novus unanimously recommends that all Novus shareholders vote in favour of the Arrangement at the shareholder meeting to be called to consider the Arrangement.
The Board of Directors and officers of Novus intend to vote their respective Common Shares in favour of the Arrangement, and have entered into support agreements with Yanchang Canada pursuant to which they have agreed to, among other things, vote their Common Shares in favour of the Arrangement.
Yanchang Petroleum Group, the largest shareholder of Yanchang Petroleum International, has conveyed its intention to vote its shares in favour of the Arrangement at the meeting of Yanchang Petroleum International's shareholders.
Advisors
Cormark Securities Inc. ("Cormark"), as lead, and FirstEnergy Capital Corp. ("FirstEnergy") are acting as financial advisors to Novus in the transaction. GMP Securities L.P. is acting as special advisor to the Special Committee of the Novus Board of Directors. Canaccord Genuity Corp. and Haywood Securities Inc. are acting as strategic advisors to Novus. Blake, Cassels & Graydon LLP is acting as legal counsel to Novus.
Cormark and FirstEnergy have each provided the Board of Directors of Novus with their verbal opinions that, as of the date of the Arrangement Agreement and subject to review of final documentation, the consideration to be received by the holders of Common Shares under the written Arrangement is fair, from a financial point of view, to such holders. A copy of each financial advisor's opinion will be included in the information circular to be sent to Novus shareholders for the special meeting to be called to consider the Arrangement.
About Yanchang Petroleum International Limited
Yanchang Petroleum International is principally engaged in the following operations (i) investment in oil, natural gas and energy related businesses; (ii) exploration, exploitation and operation of oil and gas; and (iii) fuel oil trading and distribution. In its upstream operations, Yanchang Petroleum International holds a 100% stake in Block 3113 and Block 2104 in the Republic of Madagascar. In its downstream operations, Yanchang Petroleum International is principally engaged in wholesale, retail, storage and transportation of oil products and has been granted valid licenses for distribution and sales of oil products in China. Yanchang Petroleum International currently owns storage facilities with a total area of 209 mu (approximately 14 hectares) and capacity of 120,000 cubic meters, a 2,500-meter private railway, a retail network of 10 refueling stations, and has distribution and sales capability for processing up to 2,000,000 tons of oil products per year. In the first half of 2013, Yanchang Petroleum International achieved its operating target of sales volumes of over 900,000 tons of oil products and sales revenue of over HK$8 billion (approximately US$1 billion) for its oil product operation in China. For details, please refer to www.yanchangpetroleum.com.
About Shaanxi Yanchang Petroleum (Group) Co., Limited
Yanchang Petroleum Group is principally engaged in oil and gas exploration, exploitation, processing, pipeline transportation and sales of oil and gas; chemical engineering of oil, gas and coal, machinery manufacturing, project construction and oil and gas research and development. Yanchang Petroleum Group owns the right for exploration, exploitation and operation of oil and natural gas resources and has refining facilities in China, and owns oil and natural gas resource assets in China and abroad. In 2012, Yanchang Petroleum Group produced 12.54 million tons of crude oil, processed 14 million tons of crude oil and produced 256 million cubic meters of natural gas, and achieved annual revenue of RMB162 billion (approximately US$25 billion). Yanchang Petroleum Group, CNPC, Sinopec and CNOOC are the largest four enterprises in China which own and have the right to explore oil and gas resources in China, and Yanchang Petroleum Group is the sole petroleum enterprise with more than 100 years of history. Based on Fortune 500 listing issued in 2013, Yanchang Petroleum Group ranks No. 464 amongst the top 500 companies in the world and No. 183 in terms of earnings. For details, please refer to www.sxycpc.com.
Neither the 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.
This news release will not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. Such securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States, or to a U.S. person, absent registration, or an applicable exemption therefrom.
futr
Could be a buyout here and I'm not in Novus right now!
sumi
VANCOUVER, Aug. 28, 2013 /CNW/ - The following issues have been halted by IIROC:
Company: Novus Energy Inc.
TSX-Venture Symbol: NVS
Reason: At the Request of the Company Pending News
Halt Time (ET): 8:37 AM ET
The Investment Industry Regulatory Organization of Canada (IIROC) can make a decision to impose a temporary suspension of trading in a security of a publicly listed company, usually in anticipation of a material news announcement by the company. Trading halts are issued based on the principle that all investors should have the same timely access to important company information. IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.
SOURCE Investment Industry Regulatory Organization of Canada (IIROC)
Copyright 2013 Canada NewsWire
futr
Novus Energy Inc. reports significant 2012 reserves & production growth
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Novus Energy Inc. (TSXV:NVS)
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1 Month : From Mar 2013 to Apr 2013
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S./
CALGARY, April 17, 2013 /CNW/ - Novus Energy Inc. ("Novus" or the "Company") (TSXV: NVS) is pleased to announce a substantial increase to its reserves and production from its successful 2012 capital program.
The Company's year-end independent reserve evaluation was prepared by Sproule Associates Limited ("Sproule") effective December 31, 2012 (the "Sproule Report").
Reserve Highlights
Proved reserves at December 31, 2012 increased by 68% to 14.85 million boe, up substantially from 8.84 million boe on December 31, 2011.
Proved plus probable reserves at December 31, 2012 increased by 56% to 22.72 million boe, up from 14.56 million boe on December 31, 2011.
The net present value of proved plus probable reserves, before income tax and discounted at 10%, increased to $377.1 million up from $331.3 million at December 31, 2011.
Oil and natural gas liquids ("NGLs") at December 31, 2012 represent 82% of proved plus probable reserves on a boe basis and 81% of total proved reserves.
Total proved reserves at December 31, 2012 represent 65% of total proved plus probable reserves, up from 61% on December 31, 2011.
Reserve replacement for the year was 829% on a proved plus probable basis and 637% based on proved reserves.
The Company's Reserve Life Index at December 31, 2012 was 18.1 years on a proved plus probable basis and 11.8 years on a proved basis (based on annualized fourth quarter 2012 production).
Finding, development and acquisition costs, excluding future development capital ("FDC"), were $9.41/boe for proved plus probable reserves and $12.25/boe for proved reserves. Including FDC, finding, development and acquisition costs were $26.87/boe for proved plus probable reserves and $28.62/boe for proved reserves.
Operational Highlights
The Company's average production for 2012 was 3,059 boe/d, representing 55% year over year average production volume growth.
Novus achieved production of 3,444 boe/d in the fourth quarter of 2012 (78% oil and liquids) representing a 21% increase over fourth quarter 2011 production volumes.
The preliminary estimate of first quarter 2013 average production based on field estimates is 4,090 boe/d.
Operating netbacks in 2012 for the Company's Viking light oil production in Dodsland were estimated to be $54.16/boe.
During 2012 Novus operated the drilling of 72 wells all using horizontal multi stage frac technology.
During the first quarter of 2013 Novus drilled 17 wells all using horizontal multi stage frac technology. Twenty wells were completed and brought on production during the quarter.
Novus currently controls 219 net sections of Viking rights, and has a risked drilling inventory of 1,585 net, undrilled Viking oil locations.
Operational Update
In the fourth quarter of 2012, Novus achieved production of 3,444 boe/d, a 21% increase over fourth quarter 2011 average production volumes of 2,845 boe/d. 2012 average annual production was 3,059 boe/d, a 55% increase over 2011 average annual production volumes of 1,971 boe/d.
The Company drilled a total of 72 wells (72.0 net) in 2012 all targeting Viking oil within the Dodsland region of Saskatchewan. Twenty-four of these wells (24.0 net) were drilled in the fourth quarter of 2012.
During the fourth quarter of 2012, Novus drilled, completed and placed on production three wells to the west of its Flaxcombe field. The western most well drilled in this extension is situated over 12 miles from the Flaxcombe field. In the first quarter of 2013, Novus drilled, cased and put on production four additional successful wells in the region. With recent land purchases Novus controls approximately 17.5 sections of land in this western extension and with its success, has materially added to its drilling inventory.
Due to higher than average snowfall levels in Saskatchewan this year, Novus has taken several steps to mitigate the impact of spring breakup on its production. The Company has tied all possible wells into its pipeline system and has negated the need for trucks in regular operations in its core Flaxcombe area. Within the region, where trucks will be required, the Company has distributed a large quantity of rig matting to ensure emulsion hauling can continue on access roads through breakup. All field oil storage tanks were emptied prior to road bans being applied giving the Company ample capacity to maintain regular production in the event of inadvertent short term trucking disruptions.
Novus had a very active and highly successful year in 2012. The large reserve additions the Company obtained were almost exclusively generated in its key Viking light oil resource play in Dodsland, Saskatchewan. Virtually all of the proved and probable reserve growth the Company achieved came from organic drilling. The attractive finding, development and acquisition costs the Company enjoys validate its growth strategy of assembling a predictable, low risk, multi-year drilling inventory within a concentrated core area with year round access. Novus now controls 219 net sections of Viking rights in the Greater Dodsland area of Saskatchewan and the Greater Provost area of Alberta.
Financial Position
The Company ended the 2012 fiscal year with net debt of $78.9 million, against lines of credit of $105 million. Novus' strong financial position and unused lines of credit provide the Company with the ability to maintain its growth profile and continue the exploitation of its significant drilling inventory.
Value Optimization Process
On December 4, 2012, Novus announced that it had retained financial advisors to assist the Special Committee of the Board of Directors in exploring and evaluating a broad range of options to optimize shareholder value. Technical presentations commenced during the third week of January 2013 for interested and qualified parties who have entered into a confidentiality agreement with Novus. The Company does not intend to disclose future developments with respect to the process unless and until the Board of Directors has approved a specific transaction or otherwise determines that disclosure is appropriate or required.
Reserves
The reserves data set forth below is based upon the Sproule Report. The following presentation summarizes the Company's crude oil, natural gas liquids and natural gas reserves and the net present values of future net revenue of the Company's reserves before income taxes and using forecast prices and costs. The Sproule Report has been prepared in accordance with the standards contained in the COGE Handbook and the reserves definitions contained in NI 51-101.
All evaluations and reviews of future net cash flows are stated prior to any provisions for interest costs or general and administrative costs and after the deduction of estimated future capital expenditures for wells to which reserves have been assigned. It should not be assumed that the estimates of future net revenues presented in the tables below represent the fair market value of the reserves. There is no assurance that the forecast prices and cost assumptions will be attained and variances could be material. The recovery and reserve estimates of crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided herein.
Light and Medium
Oil Heavy Oil Natural Gas
Liquids Natural Gas Barrels of oil
equivalent
Gross Net Gross Net Gross Net Gross Net Gross Net
(Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mmcf) (Mmcf) (Mboe) (Mboe)
Proved
Producing 3,501.0 3,107.7 11.4 9.4 65.3 44.3 6,965 6,133 4,738.6 4,183.4
Non-Producing 68.9 59.5 - - 0.9 0.8 124 104 90.5 77.6
Undeveloped 8,424.2 7,604.4 - - 19.7 16.3 9,485 8,651 10,024.6 9,062.6
Total Proved 11,994.1 10,771.6 11.4 9.4 85.9 61.3 16,574 14,888 14,853.7 13,323.6
Probable 6,427.9 5,802.2 33.7 25.8 52.2 37.9 8,093 7,307 7,862.4 7,083.9
Total Proved plus
Probable 18,422.0 16,573.8 45.1 35.2 138.1 99.3 24,666 22,196 22,716.1 20,407.5
Notes:
"Gross" means the Company's reserves before calculation of royalties, and before consideration of the Company's royalty interests.
"Net" means the Company's reserves after deduction of royalty obligations, and including the Company's royalty interests.
Oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil.
Columns may not add due to rounding.
Reserves Values
The estimated before tax future net revenues associated with the Company's reserves, effective December 31, 2012 and based on Sproule's December 31, 2012 future price forecast, are summarized in the following table:
(M$) 0% 5% 10% 15% 20%
Proved
Producing 182,823 154,829 134,577 119,431 107,760
Non-Producing 1,998 1,550 1,214 956 753
Undeveloped 239,703 156,922 103,133 67,153 42,444
Total Proved 424,524 313,301 238,923 187,539 150,957
Probable 318,009 203,435 138,202 98,773 73,626
Total Proved plus Probable 742,533 516,736 377,125 286,313 224,583
Notes:
Net present value of future net revenue includes all resource income:
Sale of oil, gas, and by-product reserves
Processing third party reserves
Other income
Values are based on net reserve volumes
Columns may not add due to rounding
Price Forecast
The December 31, 2012 Sproule price forecast is summarized as follows:
Year $US/$Cdn
Exchange Rate WTI @
Cushing AB Edmonton
Light Hardisty
Bow River Natural Gas at
AECO-C Spot
(US$/bbl) (C$/bbl) (C$/bbl) (C$/Mmbtu)
2013 1.001 89.63 84.55 70.18 3.31
2014 1.001 89.93 89.84 75.47 3.72
2015 1.001 88.29 88.21 74.09 3.91
2016 1.001 95.52 95.43 81.12 4.70
2017 1.001 96.96 96.87 82.34 5.32
2018 1.001 98.41 98.32 83.57 5.40
2019 1.001 99.89 99.79 84.82 5.49
2020 1.001 101.38 101.29 86.10 5.58
2021 1.001 102.91 102.81 87.39 5.67
2022 1.001 104.45 104.35 88.70 5.76
2023 1.001 106.02 105.92 90.03 5.85
2024+ +1.5%/yr +1.5%/yr +1.5%/yr +1.5%/yr
Note: Inflation is accounted for at 1.5% per year.
Finding, Development and Acquisition Costs ("FD&A")
Novus' F&D and FD&A costs for 2012, 2011 and the three year average are presented in the tables below. The costs used in the F&D and FD&A calculations are the capital costs related to: land acquisition and retention; drilling; completions; tangible well site equipment; tie-ins; facilities; and other costs, plus the change in estimated FDC as per the independent reserve report, inclusive of the effects of the Alberta Drilling Royalty Credit program. Acquisition costs are net of any proceeds from dispositions of properties. Due to the timing of capital costs and the subjectivity in the estimation of further costs, the aggregate of the exploration and developments costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserve additions for that year (all figures in the following tables are in thousands of dollars unless otherwise stated).
Finding & Development Costs - Proved 3 Year
(000's, except $/boe amounts) 2012 2011 Average
Capital expenditures (excluding acquisitions and dispositions) $87,536 $73,580 $71,588
Change in future development capital 116,702 53,657 82,751
Total capital for F&D 204,238 127,237 154,339
Reserve additions, excluding acquisitions and dispositions 7,155.8 4,665.1 5,051.6
Proved F&D costs - including future development capital ($/boe) 28.54 27.27 30.55
Proved F&D costs - excluding future development capital ($/boe) 12.23 15.77 14.17
Finding & Development Costs - Proved plus probable 3 Year
(000's, except $/boe amounts) 2012 2011 Average
Capital expenditures (excluding acquisitions and dispositions) $87,536 $73,580 $71,588
Change in future development capital 162,072 58,889 108,687
Total capital for F&D 249,608 132,469 180,275
Reserve additions, excluding acquisitions and dispositions 9,351.9 5,896.4 7,210.5
Proved plus probable F&D costs - including future development capital ($/boe) 26.69 22.47 25.00
Proved plus probable F&D costs - excluding future development capital ($/boe) 9.36 12.48 9.93
Finding, Development & Acquisition Costs - Proved 3 Year
(000's, except $/boe amounts) 2012 2011 Average
Capital expenditures (including acquisitions, net of dispositions) $87,306 $73,110 $76,234
Change in future development capital 116,692 48,052 82,751
Total capital for FD&A 203,998 121,162 158,985
Reserve additions, including net acquisitions 7,128.6 4,734.2 5,211.1
Proved FD&A costs - including future development capital ($/boe) 28.62 25.59 30.51
Proved FD&A costs - excluding future development capital ($/boe) 12.25 15.44 14.63
Finding, Development & Acquisition Costs - Proved plus probable 3 Year
(000's, except $/boe amounts) 2012 2011 Average
Capital expenditures (including acquisitions, net of dispositions) $87,306 $73,110 $76,234
Change in future development capital 162,062 48,416 108,687
Total capital for FD&A 249,368 121,526 184,921
Reserve additions, including net acquisitions 9,278.8 6,037.6 7,485.0
Proved plus probable FD&A costs - including future capital ($/boe) 26.87 20.13 24.71
Proved plus probable FD&A costs - excluding future capital ($/boe) 9.41 12.11 10.18
Notes:
The reserves used in the above calculations are Company gross reserves additions, including revisions.
The 2012 capital expenditures used in the above calculations are unaudited as the Company's 2012 annual financial statements are in the process of being finalized. These numbers and calculations thereon are subject to change upon completion of the audit.
Reserves Replacement
Novus' 2012 FD&A activities replaced 829% of production on a proved plus probable basis and 637% on a proved basis.
Production (Mboe) 1,119.5
Proved plus probable reserve additions (Mboe) 9,278.8
Proved plus probable reserve replacement 829%
Proved reserve additions (Mboe) 7,128.6
Proved reserve replacement 637%
Contingent Resource Assessment
Sproule previously provided Novus with an independent Contingent Resource Assessment for the Company's Dodsland Viking light oil assets effective as at December 31, 2011 (the "Contingent Resource Assessment"), the intent of which was to independently assess the contingent resource potential of the area. Novus did not commission Sproule to perform an update to the Contingent Resource Assessment in 2012 given the growth in production and reserves the Company exhibited, and the significant amount of industry development in the area that occurred during the year.
Measurements
Reported production represents Novus' ownership share of sales before the deduction of royalties. Where amounts are expressed on a barrel of oil equivalent ("boe") basis, natural gas has been converted at a ratio of six thousand cubic feet to one boe. This ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Boe's may be misleading, particularly if used in isolation. References to natural gas liquids ("liquids") include condensate, propane, butane and ethane and one barrel of liquids is considered to be equivalent to one boe.
Neither the 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.
This news release will not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. Such securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States, or to a U.S. person, absent registration, or an applicable exemption therefrom.
futr
These Companies Have Catalysts That You Can Not Afford To Overlook
By Nathan Kirykos - January 14, 2013| Tickers: CNE, KOS, MMT, NVS, PCE
http://beta.fool.com/traderinvestor70/2013/01/14/these-companies-have-catalysts-you-can-not-afford-/21047/?ticker=NVS&source=eogyholnk0000001
Drilling in Canada
Significant stock movements could also take place in the Canadian energy patch during the next weeks, if some deals and transactions are completed successfully. Novus Energy (TSXV: NVS) is an oil producer of 3,600 boepd (77% oil and liquids). In December 2012, Novus retained financial advisors to optimize shareholder value. This includes a sale of the company or a merger with another entity. A deal will most likely take place with a significant premium because Novus trades with low metrics. With an Enterprise Value of $260M and 14.56 MMboe of 2P Reserves [latest report of Dec 2011], Novus trades for $72,000/boepd and $18/boe of Reserves.
Novus Energy Inc. meets 2012 exit rate production target and announces a successful extension to its Greater Dodsland Viking ...
CALGARY, Jan. 15, 2013 /CNW/ - Novus Energy Inc. ("Novus" or the "Company") (TSXV: NVS) is pleased to report it has met its corporate exit rate production target of 4,200 boe/d for 2012.
Estimated field level production for the last week of December averaged 4,234 boe/d with approximately 78% of these volumes comprised of oil and liquids. Based on field estimates, average production during December was 3,925 boe/d and fourth quarter 2012 volumes averaged 3,530 boe/d.
During the fourth quarter of 2012, Novus drilled 24 wells (24 net), all of which were Viking horizontal oil wells in the greater Dodsland area. Throughout 2012, Novus drilled a total of 72 wells (72 net) and completed 68 wells (68 net), all of which were Viking horizontal oil wells in the greater Dodsland area.
During the most recently completed quarter, Novus drilled, completed and placed on production three key successful wells to the west of its Flaxcombe field. The Company is pleased with the wells' performance and believe they have the potential to validate a substantial amount of the Company's land. The western most well drilled in this successful extension is situated over 12 miles from the Flaxcombe field. In 2013, Novus has drilled and cased three additional wells in the region and expects to bring them on production during the first quarter. Novus controls approximately 14.5 sections of land in the region and with continued development success, the Company believes this land block may materially add to its drilling inventory.
Novus now controls 210 net sections of Viking rights in the Greater Dodsland area of Saskatchewan and the Greater Provost area of Alberta.
Value Optimization Process
On December 4, 2012, Novus announced that it had retained Cormark Securities Inc. ("Cormark"), as lead, and FirstEnergy Capital Corp. ("FirstEnergy") as its financial advisors to assist the Special Committee of the Board of Directors in exploring and evaluating a broad range of options to optimize shareholder value.
The data room is now available for interested and qualified parties who have entered into a confidentiality agreement with Novus. The Company has not established a definitive schedule to complete its review and consideration of options to optimize shareholder value, and does not intend to disclose developments with respect to the process unless and until the Board of Directors has approved a specific transaction or otherwise determines that disclosure is appropriate.
Parties interested in obtaining further information regarding the process can contact Cormark at novus@cormark.com or FirstEnergy at novus@firstenergy.com.
Novus Shares trade on the TSX Venture Exchange under the symbol NVS. Novus currently has 189.4 million common shares outstanding.
Neither the 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.
This news release will not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. Such securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States, or to a U.S. person, absent registration, or an applicable exemption therefrom.
MEASUREMENTS
Reported production represents Novus' ownership share of sales before the deduction of royalties. Where amounts are expressed on a barrel of oil equivalent ("boe") basis, natural gas has been converted at a ratio of six thousand cubic feet to one boe. This ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Boe's may be misleading, particularly if used in isolation. References to natural gas liquids ("liquids") include condensate, propane, butane and ethane and one barrel of liquids is considered to be equivalent to one boe.
ADVISORY REGARDING FORWARD LOOKING STATEMENTS
Certain disclosures set forth in this press release constitute forward-looking statements. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believes", "budget", "continue", "could", "estimate", "forecast", "intends", "may", "plan", "predicts", "projects", "should", "will" and other similar expressions. All estimates and statements that describe the Company's future, goals, or objectives, including Management's assessment of future plans and operations, may constitute forward-looking information under securities laws. Forward looking statements involve known and unknown risks and uncertainties which include, but are not limited to: the failure of the Company to undertake a sale, farmout or joint venture of all or a portion of the assets of the Company, a merger or other business combination of the Company with another entity, a recapitalization of the Company, a sale of the Company as a whole or any combination thereof; exploration, development and production risks; assessments of acquisitions; reserve measurements; availability of drilling equipment; access restrictions; permits and licenses; aboriginal claims; title defects; commodity prices; commodity markets, transportation and marketing of crude oil, liquids and natural gas; reliance on operators and key personnel; competition; corporate matters; funding requirements; access to credit and capital markets; market volatility; cost inflation; foreign exchange rates; general economic and industry conditions; environmental risks; Kyoto protocol; and government regulation and taxation.
Forward-looking statements relate to future events and/or performance and although considered reasonable by Novus at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated in the statements made. Novus does not undertake any obligation to publicly update forward-looking information except as required by applicable securities law.
Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Novus' operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), and at Novus' website (www.novusenergy.ca). The forward-looking statements and information contained in this press release are made as of the date hereof and Novus undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Novus Energy Inc.
Copyright 2013 Canada NewsWire
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Novus Energy Inc. Announces Third Quarter 2012 Results, Increase to Credit Facilities and Significant Viking Acreage Expansion
PrintAlert
Novus Energy Inc. (TSXV:NVS)
Intraday Stock Chart
Today : Wednesday 21 November 2012
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S./
CALGARY, Nov. 20, 2012 /CNW/ - Novus Energy Inc. ("Novus" or the "Company") (TSXV: NVS) announces that it has filed its unaudited condensed interim financial statements and management's discussion and analysis ("MD&A") as at and for the three and nine months ended September 30, 2012. These may be accessed through the SEDAR website www.sedar.com and at the Company's website www.novusenergy.ca.
FINANCIAL HIGHLIGHTS
•Production revenue for the three months ended September 30, 2012 increased 31% to $19.35 million from $14.79 million recorded in the comparative period of 2011. For the nine months ended September 30, 2012, production revenue increased 71% to $54.63 million from $31.95 million recorded in the comparative period of 2011.
•Funds flow from operations for the three months ended September 30, 2012 increased 37% to $10.84 million from $7.93 million recorded in the comparative period of 2011. For the nine months ended September 30, 2012 funds flow from operations increased 114% to $30.08 million from $14.08 million recorded in the comparative period of 2011.
•Net income for the three months ended September 30, 2012 was $1.72 million compared to $3.46 million recorded in the comparative period of 2011. For the nine months ended September 30, 2012 net income increased to $5.65 million from $1.37 million recorded in the comparative period of 2011.
•Net capital expenditures for the three months ended September 30, 2012 were $22.95 million versus $31.29 million recorded in the comparative period of 2011. For the nine months ended September 30, 2012, net capital expenditures were $58.16 million versus $61.43 million recorded in the comparative period of 2011.
•At September 30, 2012, the Company had net debt of $61.20 million.
•Subsequent to quarter end, the Company's credit facilities which totaled $60 million at the start of the year were expanded from $85 million to $105 million. The new credit facilities consist of a $95 million revolving operating demand loan and a $10 million acquisition/development demand loan.
•At September 30, 2012, the Company had estimated tax pools of $252.62 million.
•Corporate operating netbacks for the three months ended September 30, 2012 decreased 8% to $45.87/boe from $49.78/boe recorded in the comparative period of 2011. For the nine months ended September 30, 2012 corporate operating netbacks increased 9% to $46.40/boe from $42.49/boe recorded in the comparative period of 2011.
•Operating netbacks for the Company's Viking production were $53.35/boe for the three months ended September 30, 2012 and $55.37/boe for the nine months ended September 30, 2012.
A summary of financial results for the three and nine month periods ended September 30, 2012 along with the comparative periods are outlined in the following table:
Three months ended Sep 30 Nine months ended Sep 30
2012 2011 % Change 2012 2011 % Change
Financial
($000s, except per share amounts)
Revenue 19,351 14,793 31 54,630 31,950 71
Funds flow from operations 10,839 7,933 37 30,085 14,079 114
per share - basic and diluted 0.06 0.05 20 0.16 0.08 100
Net income 1,720 3,460 (50) 5,654 1,368 313
per share - basic and diluted 0.01 0.02 (50) 0.03 0.01 200
Capital expenditures, net 22,950 31,294 (27) 58,160 61,426 (5)
Net debt 61,195 48,358 27 61,195 48,358 27
Weighted average shares outstanding
basic 189,800 169,700 14 185,986 169,328 10
diluted 191,464 172,855 11 189,843 181,113 5
OPERATIONAL HIGHLIGHTS
•Average daily production for the three months ended September 30, 2012 increased 46% to 3,154 boe/d (77% oil & liquids) from 2,159 boe/d (80% oil & liquids) recorded in the comparative period of 2011. For the nine months ended September 30, 2012 average daily production increased 75% to 2,929 boe/d (77% oil & liquids) from 1,676 boe/d (72% oil & liquids) recorded in the comparative period of 2011.
•Average daily oil and liquids production for the three months ended September 30, 2012 increased 41% to 2,439 bbls/d from 1,730 bbls/d recorded in the comparative period of 2011. For the nine months ended September 30, 2012 average daily oil and liquids production increased 88% to 2,266 bbls/d from 1,207 bbls/d recorded in the comparative period of 2011.
•Current corporate production exceeds 3,600 boe/d (77% oil & liquids) based on field estimates.
•Corporate operating costs for the three months ended September 30, 2012 decreased 27% to $9.95/boe from $13.69/boe recorded in the comparative period of 2011. For the nine months ended September 30, 2012 corporate operating costs decreased 33% to $10.49/boe from $15.75/boe recorded in the comparative period of 2011.
•Operating costs for the Company's Viking production for the three months ended September 30, 2012 decreased 35% to $7.45/boe from $11.43/boe recorded in the comparative period of 2011. For the nine months ended September 30, 2012 Viking operating costs decreased 45% to $7.57/boe from $13.71/boe recorded in the comparative period of 2011.
•During the third quarter of 2012 Novus drilled 22 wells (22.0 net) all of which were Viking horizontal oil wells in the greater Dodsland area. Twenty wells (20.0 net) were completed. For the first nine months of 2012 Novus drilled 48 wells (48.0 net) all of which were Viking horizontal oil wells in the greater Dodsland area. Thirty-six wells (36.0 net) were completed by September 30, 2012.
•Novus continues to increase its prospective land base for Viking oil in the Provost region of Alberta. This new core area is a complementary extension to the Company's existing Dodsland assets. With 35 net sections prospective for Viking oil having been acquired subsequent to the end of the third quarter, Novus now controls a total of 93.5 net sections of land in this new play.
•Novus has invested $10.4 million over the past three quarters in facilities, infrastructure and pipelines. These large investments in the Company's 100% owned facilities and infrastructure have led to a material reduction in Viking operating costs. The Company's operating costs of $7.45/boe for the third quarter are amongst the lowest in the entire Viking oil play.
A summary of operational results for the three and nine month periods ended September 30, 2012 along with the comparative periods, are outlined in the following table:
Three months ended Sep 30 Nine months ended Sep 30
Operational 2012 2011 % Change 2012 2011 % Change
Production
Oil & liquids (bbls/d) 2,439 1,730 41 2,266 1,207 88
Gas (mcf/d) 4,287 2,571 67 3,980 2,816 41
Oil equivalent (boe/d) 3,154 2,159 46 2,929 1,676 75
Sales price per unit
Oil & liquids ($/bbl) 81.75 87.32 (6) 83.89 87.87 (5)
Gas ($/mcf) 2.55 3.79 (33) 2.34 3.91 (40)
Oil equivalent ($/boe) 66.70 74.49 (10) 68.06 69.84 (3)
The full text of the September 30, 2012 condensed interim financial statements and associated MD&A can be found on the Company's website at www.novusenergy.ca and on SEDAR at www.sedar.com.
OPERATIONAL UPDATE
During the third quarter of 2012 Novus drilled 22 wells (22.0 net) all of which were Viking horizontal oil wells in the greater Dodsland area. Twenty of these wells (20.0 net) were completed by September 30, 2012. For the first nine months of 2012 Novus drilled a total of 48 wells (48.0 net), all of which were Viking horizontal oil wells in the greater Dodsland area. Thirty-six of these wells (36.0 net) were completed by September 30, 2012. A total of 23 more wells are planned to be drilled, and 32 wells are scheduled to be completed during the fourth quarter.
Novus has dedicated $10.4 million of capital year to date towards expanding its 100% owned and operated facilities and infrastructure. The Company's recently completed Whiteside battery facility has treating capacity exceeding 13,000 bbls/d, with 11,000 bbls of storage capacity. In excess of 29,000 meters of emulsion lines have been completed and tie into the main facility. The significant investments the Company has made in infrastructure have resulted in the Company achieving greatly reduced operating costs and enhanced netbacks for its production. The Company is now well equipped to handle future increases in area production volumes without the need for significant incremental expenditures.
VALUE REALIZATION
Due to the high quality of Novus' asset base and the significant amount of industry interest and recent activity in the Company's Viking oil core area of Dodsland Saskatchewan, the Board of Directors of Novus have struck a Special Committee of the Board to consider how to optimize shareholder value.
2012 GUIDANCE
Novus is forecasting production to average approximately 3,100 boe/d (77% oil & liquids) in 2012 with an exit rate of 4,200 boe/d (77% oil & liquids). Due to timing issues caused by weather delays, by year end the Company expects to have drilled 71 wells and completed 68 wells as opposed to 73 wells which were projected in the original budget. The Company expects that it will catch up to its original schedule by the first quarter of 2013. Capital expenditures for 2012 are anticipated to be $88.5 million up from the $81 million originally projected due to additional spending on facilities and infrastructure and undeveloped land acquisitions which greatly enhanced the Company's exposure to prospective Viking oil opportunities. Of the $88.5 million, $11.5 million will have been incurred on facilities and infrastructure and another $3.4 million will be expended on land. The Company's original projections of $81.0 million did not budget for any land expenditures and $6.0 million being spent on facilities. During the course of the year, the Company made the strategic decision to make additional investments to build out its facilities and create an infrastructure system capable of handling the significant production volumes the Company expects to generate in the coming years. The investments in area infrastructure have resulted in the Company incurring far lower operating costs during the course of 2012, and future years should continue this trend. 2012 estimated year end net debt is anticipated to be $78 million, and 2012 funds flow from operations is anticipated to be $43 million. The increase in the year end forecast net debt is attributable to the increased capital spending the Company dedicated to land and facilities during the year, and the reduced cash flow it will see as a result of lower than forecast crude oil pricing and increased differentials.
With the expansion of the Company's credit facilities to $105 million, made up of a $95 million revolving operating demand loan and a $10 million acquisition/development demand loan, these updated facilities provide the Company the flexibility to maintain a solid financial position and enable it to fund capital programs for future years.
OUTLOOK
Novus has worked hard to become one of the most efficient Viking drillers in the Dodsland play. Costs of drilling and completions have continued to improve and have had a material impact on the economics of the Company's Viking wells. Initial production rates from all our sub areas in Dodsland continue to meet or exceed Novus' internal type curves.
Our continued drilling success in Dodsland has highlighted the repeatable, low risk nature of our asset base. Since recapitalization, three and a half years ago, the Viking play at Dodsland has transitioned the Company from a start up of approximately 300 boe/d to a light oil producer with production in excess of 3,600 boe/d. This rapid growth has been achieved mainly from the drill bit.
Novus' Dodsland properties are high net back, light oil assets characterized by significant original oil in place, low recovery factors and year round access. The Company has 609 net high quality risked Viking oil drilling locations on its 117 net sections of land based on an eight well per section drilling density. This already significant opportunity base does not reflect the ability to down space from eight to 16 wells per section or the future potential to water flood the reservoir. Novus believes that the development of the Viking resource is in its early stages and that there is further significant upside by applying secondary recovery methods. The 609 locations do not include potential locations on the Company's recently acquired Alberta Viking lands.
NON-IFRS FINANCIAL MEASUREMENTS
Included in this press release are references to certain financial measures commonly used in the oil and natural gas industry, such as funds flow from operations, operating netbacks and net debt. These measures have no standardized meanings, are not defined by International Financial Reporting Standards ("IFRS"), and accordingly are referred to as non-IFRS measures. The determination of these measures may not be comparable to the same as reported by other companies and should not be considered an alternative to, or more meaningful than, cash provided by operating, investing and financing activities or net income as determined by IFRS as an indicator of the Company's performance or liquidity.
The Company considers funds flow from operations to be a key measure as it demonstrates the Company's ability to generate the cash necessary to repay debt and to fund future growth through capital investment. Novus determines funds flow from operations as cash provided by operating activities prior to changes in non-cash working capital items and decommissioning expenditures.
Operating netbacks are used by management to assess operating results between periods and between peer companies as they provide an indication of results generated by the Company's principal business activities before the consideration of how these activities are financed or how the results are taxed. Operating netbacks are calculated by deducting royalties, field operations and transportation and marketing expenses from production revenue.
The Company monitors net debt as part of its capital structure. Net debt is calculated as current assets less all current liabilities, including any bank debt.
OTHER MEASUREMENTS
Reported production represents Novus' ownership share of sales before the deduction of royalties. Where amounts are expressed on a barrel of oil equivalent ("boe") basis, natural gas has been converted at a ratio of six thousand cubic feet to one boe. This ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Boe's may be misleading, particularly if used in isolation. References to natural gas liquids ("liquids") include condensate, propane, butane and ethane and one barrel of liquids is considered to be equivalent to one boe.
Novus Energy Inc. is a well positioned, junior oil and gas company with a proven management team committed to aggressive, cost-effective growth of high netback light oil reserves and production. Novus will continue to grow through a targeted acquisition and consolidation strategy coupled with development and exploration drilling.
Novus' common shares trade on the TSX Venture Exchange under the symbol NVS. Novus currently has 189.4 million common shares outstanding.
Neither the 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.
This news release will not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. Such securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States, or to a U.S. person, absent registration, or an applicable exemption therefrom.
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Novus Energy Inc. Announces an Increase to its Credit Facilities and an Update on its Alberta Viking Oil Land Position
http://ih.advfn.com/p.php?pid=nmona&article=54447593
Novus Energy Inc. (TSXV:NVS)
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S./ CALGARY, Oct. 9, 2012 /CNW/ - Novus Energy Inc. ("Novus" or the "Company") announces that its current credit facility of $65 million is being expanded to $85 million. The new facility will be made up of a $75 million revolving operating demand loan and a $10 million acquisition/development demand loan. The new credit facility provides the Company the flexibility to maintain a solid financial position that will enable it to fund its future capital programs. Throughout 2012, Novus has continued to increase its prospective land base for Viking oil in the Provost region of Alberta. This new core area is a complementary extension to the Company's existing Dodsland assets and provides the Company with potentially significant future drilling opportunities on trend to existing Viking oil assets. With 39.25 net sections having recently been acquired, Novus now controls a total of 58 net sections of land in the area, of which the Company believes 46 are highly prospective for Viking oil development. This recently assembled acreage may meaningfully increase the Company's future drilling and development inventory. The lands the Company has acquired are proximate to historical vertical Viking oil production and recent successful horizontal drilling activity on both sides of the Alberta Saskatchewan border targeting Viking oil. A map detailing Novus' Viking land holdings is now available for viewing on the Company's website (www.novusenergy.ca). As previously announced, the Company has recently renewed its normal course issuer bid allowing it to purchase up to five million of its issued and outstanding common shares. During the course of the prior normal course issuer bid, a total of 2.2 million shares were purchased at an average cost of $0.73 per share. Novus Energy Inc. is a well positioned, junior oil and gas company with a proven management team committed to aggressive, cost-effective growth of high netback light oil reserves and production. Novus will continue to grow through a targeted acquisition and consolidation strategy coupled with development and exploration drilling. With continual evolution in lowering costs and improving production in the Viking light oil play, Novus is poised to exhibit strong growth in the future. Novus Shares trade on the TSX Venture Exchange under the symbol NVS. Novus currently has 189.4 million common shares outstanding. Neither the 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. This news release will not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. Such securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States, or to a U.S. person, absent registration, or an applicable exemption therefrom. ADVISORY REGARDING FORWARD LOOKING STATEMENTS Certain disclosures set forth in this press release constitute forward-looking statements. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believes", "budget", "continue", "could", "estimate", "forecast", "intends", "may", "plan", "predicts", "projects", "should", "will" and other similar expressions. All estimates and statements that describe the Company's future, goals, or objectives, including Management's assessment of future plans and operations, may constitute forward-looking information under securities laws. Forward looking statements involve known and unknown risks and uncertainties which include, but are not limited to: exploration, development and production risks; assessments of acquisitions; reserve measurements; availability of drilling equipment; access restrictions; permits and licenses; aboriginal claims; title defects; commodity prices; commodity markets, transportation and marketing of crude oil, liquids and natural gas; reliance on operators and key personnel; competition; corporate matters; funding requirements; access to credit and capital markets; market volatility; cost inflation; foreign exchange rates; general economic and industry conditions; environmental risks; Kyoto protocol; and government regulation and taxation. Forward-looking statements relate to future events and/or performance and although considered reasonable by Novus at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated in the statements made. Novus does not undertake any obligation to publicly update forward-looking information except as required by applicable securities law. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Novus' operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), and at Novus' website (www.novusenergy.ca). The forward-looking statements and information contained in this press release are made as of the date hereof and Novus undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. Novus Energy Inc. CONTACT: NOVUS ENERGY INC.Hugh G. RossPresident and CEO(403) 218-8895Ketan PanchmatiaChief Financial Officer(403) 218-8876Julian DinVP Business Development(403) 218-8896
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Novus Video Presentation
Hugh Ross, President & CEO of Novus Energy (TSX.V:NVX), gave a presentation at the 2012 Subscriber Investment Summit in Vancouver.
Click Here to Watch the Novus Energy Video Presentation
NVS up >50% over the past several months!
http://www.novusenergy.ca/en/documents/presentation/nvs-2012-10-01-sept_2012_corporate_presentation.pdf
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Novus Energy Inc. announces normal course issuer bid
Press Release: Novus Energy Inc. – 10 hours ago.
CALGARY , Sept. 18, 2012 /CNW/ - Novus Energy Inc. ("Novus" or the "Company") (NVS.V) announces that it intends to make a normal course issuer bid ("NCIB") through the facilities of the TSX Venture to buy up to 5,000,000 of its issued and outstanding Common Shares. This amount represents approximately 3% of Novus' 189.4 million issued and outstanding Common Shares. The bid will commence September 20, 2012 and expire September 19, 2013 and any shares acquired pursuant to the bid will be cancelled. The bid will be conducted through National Bank Financial Inc., a member of the TSX Venture Exchange.
http://finance.yahoo.com/news/novus-energy-inc-announces-normal-160400468.html
Novus has been strong recently!
Hope you had a chance to get back in-
futr
I totally agree; I waiting for a pop in Tag so I can buy 10,000 shares here.
I had the choice to buy PAL or NVS and chose PAL recently and thankfully.
Will soon be back in.
Thanks,
sumi
http://www.novusenergy.ca/en/investor/press_release_q2_2012_-_aug_14_12.pdf
futr
Unbelievably undervalued down here-
selling for $.25 on the $ NAV!
Just increased the land base again!
Comments from David Pescod on Crude Oil and G&O Stocks
CRUDE OIL $78.45 -3.00 - June 21, 2012
So what next for the price of oil is the big question. There
has been a significant drop in the price of crude oil from
roughly $105, dropping $20 rather abruptly...but the effect on
the junior resource sector has been much more than dramatic.
There is a long list of the walking wounded, those juniors
that are trading for a half, a third, or a quarter of where they
were just in the good old days of four and five months ago.
But again, after the ugliness, what next in a world where
many investors/consumers are worried about slowing international
economies and commodity prices in general.
Keith Schaefer
, editor of the Oil and Gas Investments Bulletin
puts it best. "It’s amazing you can go this quickly from
worrying about going to $150 a barrel, to worrying about oil
going to $50 a barrel."
As we survey the scene of trying to find anyone who has
recently had an opinion (and hey frankly folks, there hasn’t
been many people who have come anywhere near close to
predicting oil except for maybe Josef Schachter who we get
to later) and to start off on the bearish side of the formula, a
report just out by Raymond James is particularly bearish.
They are looking for oil to get as low as $65 in the next 12
months.
They write in the report, "The downside risk we saw in oil
prices has started sooner than we had expected, due primarily
to demand fears spurred by a flare-up of the European
debt crisis and negative economic data points across the
globe. That said, we continue to see downside pressure for
oil prices into 2013, as our oil model points to a severely
oversupplied global oil market.
While lower demand is part of the story, robust production
growth in the U.S. is the monster lurking in the shadows. We
expect this bogeyman to fully show himself before the end of
this year. Accordingly, we believe Saudi will begin to noticeably
cut production in 4Q12, while U.S. producers will begin to
curb activity in upcoming weeks. Combining the U.S.-driven
resurgence in non-OPEC supply with our lackluster demand
expectations, we believe that once the market’s focus shifts
from demand to supply, the picture will get uglier.
Thus, we are lowering our 2013 price forecast to $65/Bbl
for WTI and $80/Bbl for Brent – both well below the futures
strip and consensus estimates. We are also lowering our
long-term (10-year) WTI forecast to $80/Bbl, while keeping our
Chart courtesy of Institutional Advisors
long-term Brent assumption at $95/Bbl."
One person who just got a significant interview on
Bloomberg is John Manley who is the deep-thinker behind Wells
Fargo
and what he calls, "the Big Energy Bet". (To see this go
to Bloomberg TV. ) His belief is quite stolid that he doesn’t see
oil prices going a lot lower and he points out that there are two
things affecting the price of oil. One is the economic perception
(which is decidedly not good at the current time) and the second
point is supply and demand.
He just believes OPEC and the Saudis which has been trying
to support world economies up until lately, won’t want oil at
these prices for that much longer. Manley also point out that oil
is expensive to find and expensive stuff to lift.
He is not so constructive on natural gas though as he suggests
that gas will stay cheaper, longer than most people expect.
As far as the big difference between oil and gas he points
out that oil is easy to burn and easy to ship while natural gas is
easy to burn, but difficult to ship.
Manley tends to go with the big, dividend-paying integrated,
but his point is he believes $80-ish is the bottom.
If you are looking for people with a technical perspective, well
Bob Hoye
and his sidekick Ross Clark and they are expecting a
rebound in crude oil. They write rather bluntly, "The weekly
chart is oversold to a degree only seen eighteen times since
1983. Most instances saw the price recover 45% to 55% of the
preceding decline. With the exception of 2008, 35% was the minimum
retracement. If prices can close above $84 we should look
for an initial target of $91 with a likely target of $94 to $97."
But onto Josef Schachter, who is the one guy who has been
predicting a bear market in oil since late last year. His target has
been $75 and for the first few months of this year when oil was
at such a lofty level, I suspect his name evoked a few snickers.
Not any more.
While some of his favorite stocks have been hurt like everybody
else, he has a very interesting projection, expecting that
the North American markets haven’t finished suffering their traditional
summer ugliness and he thinks it’s going to get worse.
If you are looking for the good news in the ugliness, he suggests
that with the resource sector already having been trashed,
it’s probably going to be other sectors that take the worst of the
bruising for the rest of the summer. He expects a bottoming in
oil that could be as close to $75 and possible on spikes, even
lower. But then he says, you get the traditional winter demand
for oil kicking in as well as his expectation that the Saudi’s and
other OPEC people won’t want oil at these prices for much
longer.
Schachter points to some of the recent moves with the price
of oil according to seasonal patterns and it is truly uncanny particularly
look at the last two years when oil has bottomed two
years in a row at close to $80 in October and both years ran to
$105 or $110 by spring. That has elicited huge responses in
some of the junior stocks that today are yours for two-for-one or
three-for-one prices. Schachter also points out that $75 is not
that far away.
Needless to say, we can only hope that he’s right and that we
have a few months left of shopping at wholesale prices in the
market, to make up for the past few months
futr
85% of which will be oil!!
Updated Corporate Presentation
Pg.30 has Analysts target prices~
http://www.novusenergy.ca/en/documents/presentation/nvs-5-24-2012-corporate_presentation-web.pdf
futr
The company said it would exit the year with production at 4,500 boe/d.
futr
>I totally agree; back in as of today.
sumi
Finally bought a decent position here-
I like the growth projections and believe Novus to be grossly oversold down here-
futr
thanks for the post
sumi
Viking Country
Novus Energy finds 100% drilling success in Saskatchewan
By G Joel Chury
When former Premier Ed Stelmach raised the royalty rate on Alberta oil and gas production in 2007, Saskatchewan production soared. This was especially true for plays which require companies to employ horizontal drilling and advanced completion techniques. Companies like Novus Energy.
“It’s a fantastic area because the Saskatchewan government has done something very intelligent. They’ve initiated a flat fee on the royalty rate, and so it’s 2.5% on the first 37,000 barrels produced,” says Hugh Ross, Novus President/CEO. “It’s way better than Alberta, because it’s a highly attractive royalty rate.”
Read the rest of this article about Novus' Saskatchewan oil play. http://resourceclips.com/2012/05/07/viking-country/
New Corporate Presentation-
http://www.novusenergy.ca/en/documents/presentation/nvs-4-4-2012-corporate_presentation.pdf
These wells while not barn burners have been completed at a 100% success rate,and are providing a return rate of 1.3-
Novus projects > 4000 barrels/day by end of year 2012 which will make them cash flow positive-
Growth remains very robust and impressive.
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Novus Energy projects higher 2012 production
Wed Feb 8, 2012 9:07am EST
http://tinyurl.com/73648sk
Feb 8 (Reuters) - Canadian oil and gas company Novus Energy Inc forecast a 67 percent jump in production this year as it scales up spending in its key Viking project in Dodsland, Saskatchewan.
Novus Energy -- which has operations in Viking, Bakken and Cardium, where it is targeting mainly light oil resource plays -- also said its total proven reserves jumped 83 percent, largely on reserve additions from its Viking project.
For the fourth quarter, the company produced about 2,845 barrels of oil equivalent per day (boe/d), an increase of 81 percent.
The company pegged its 2012 capital expenditures at C$81 million, up from its budget of C$60 million for the previous year.
Novus Energy expects to produce 3,300 boe/d this year. The company said it would exit the year with production at 4,500 boe/d.
Novus Energy Inc. Reports Significant 2011 Reserves & Production Growth and Provides 2012 Capital Budget Guidance
February 8, 2012
http://finance.yahoo.com/news/Novus-Energy-Inc-Reports-cnw-1602245564.html?x=0
Novus Energy Inc. announces third quarter 2011 financial and operating results
November 22, 2011
http://finance.yahoo.com/news/Novus-Energy-Inc-announces-cnw-3810798384.html?x=0&l=1
CALGARY, Nov. 22, 2011 /CNW/ - Novus Energy Inc. ("Novus" or the "Company") (TSXV: NVS.V - News) announces that it has filed its unaudited condensed interim financial statements and management's discussion and analysis ("MD&A") as at and for the three and nine months ended September 30, 2011. These may be accessed through the SEDAR website www.sedar.com and at the Company's website www.novusenergy.ca.
During the third quarter the Company continued with its full scale oil development program on its large land block in the Viking light oil play in the Dodsland region of Saskatchewan. This low risk, development focused asset has provided Novus with an inventory of 573 drilling locations to fuel light oil growth well into the future. With current estimated field production volumes of 2,850 boe/d, Novus has more than doubled its production volumes from the second quarter of the year and will comfortably meet its 2011 exit rate guidance of 3,000 boe/d, weighted 80% to oil and liquids production.
FINANCIAL HIGHLIGHTS
• For the three months ended September 30, 2011, Novus' gross revenue increased 143% to $14.79 million compared to $6.16 million recorded in the comparative period in 2010. For the nine months ended September 30, 2011, gross revenue was $31.95 million, compared to $12.23 million in the comparative period of 2010, representing a 161% increase.
• Funds flow from operations increased 288% to $7.93 million in the third quarter of 2011, versus $2.05 million for the comparative three month period of 2010. For the first nine months of 2011, funds flow from operations increased 1,025% to $14.08 million, compared to $1.25 million recorded in the first nine months of 2010.
• Net income for the third quarter of 2011 was $3.46 million representing a material increase over the comparative three month period loss of $4.81 million in 2010. For the first nine months of 2011, net income was $1.37 million, up from the nine month period loss of $11.14 million in 2010.
• Novus achieved a record operating netback of $49.78/boe up 90% from $26.18/boe recorded in the third quarter of 2010.
• The Company's Viking production achieved impressive operating netbacks of $64.49/boe for the third quarter of 2011. For the nine month period of 2011, operating netbacks in the Viking were $59.46/boe.
• Novus' net cash capital expenditures for the three month period ended September 30, 2011, were $31.29 million, versus $10.47 million spent in the comparative period of 2010. Novus' net cash capital expenditures for the first nine months of the year were $61.47 million, compared to $36.53 million spent in the first nine months of 2010.
• The Company currently has outstanding 22.59 million in-the-money warrants expiring March 31, 2012, which, upon exercise, would result in proceeds of $16.94 million being realized by the Company.
OPERATIONAL HIGHLIGHTS
• Average daily production for the third quarter of 2011 increased 61% to 2,159 boe/d compared to 1,339 boe/d recorded in the corresponding period in 2010. Average daily production for the first nine months of 2011 was 1,676 boe/d, up 74% from the 961 boe/d recorded in the corresponding period in 2010.
• Average crude oil and liquids production for the third quarter of 2011 was up 118% to 1,730 bbls/d versus 793 bbls/d in the comparative quarter of 2010. Average crude oil and liquids production for the first nine months of 2011 was up 160% to 1,207 bbls/d versus 465 bbls/d in the comparative period of 2010.
• The Company's field level production estimate for the month of October was 2,725 boe/d. The Company's current field level production is approximately 2,850 boe/d, weighted 80% towards oil and liquids.
• Production per share increased 64% in the third quarter of 2011 compared to the second quarter of 2011. Production per share increased 58% in the third quarter of 2011, compared with the corresponding quarter of 2010.
• Novus' operating costs have continued to materially decrease from $18.20/boe in the first quarter of 2011 to $13.69/boe in the third quarter of 2011.
• The Company's third quarter 2011 operating costs for its Viking production was $11.43/boe, with further reductions anticipated in the fourth quarter.
• During the third quarter of 2011, Novus spent $24.8 million drilling and completing a record 30 wells (29.8 net), 29 of which (28.8 net) were horizontal Viking oil wells, with a 100% success rate. Twenty- four of these wells were brought on stream during the quarter, in addition to 11 wells that were drilled during the second quarter.
• For the nine months ending September 30, 2011 Novus participated in the drilling of 54 wells (52.9 net), 47 of which (46.8 net) were horizontal Viking oil wells, with a 100% success rate.
• Novus now controls 122.75 net sections of Viking rights, and has a risked drilling inventory of 573 net, undrilled Viking oil locations.
• Results from the Company's Flaxcombe lands in the Viking play are materially exceeding expectations. Novus has identified two distinct Viking cycles which have been mapped over 10 contiguous sections. This 10 section sub area has the potential to add up to 80 future drilling locations for the Company.
• During 2011, Novus acquired a 100% working interest in approximately 55 net sections of land with rights in the oil bearing Birdbear formation in southwestern Saskatchewan. This acquisition complemented the 24 net sections of land Novus already owned targeting the formation. All of these lands are located in the immediate vicinity of the Company's Dodsland Viking oil project and provide the Company with an exciting opportunity to target another prolific, emerging oil resource play, while maintaining operational synergies. The Company may be dedicating some of next year's capital expenditure program towards the shooting of 3D seismic and the drilling of a number of Birdbear locations.
• With highly economic netbacks of over $64.00/boe from its Viking oil assets, the Company is generating strong cash flow which will provide it with the ability to internally fund an aggressive drilling program in 2012.
A summary of financial and operational results for the three and nine month periods ended September 30, 2011, along with the comparative periods, are outlined in the following table:
http://finance.yahoo.com/news/Novus-Energy-Inc-announces-cnw-3810798384.html?x=0&l=1
THIRD QUARTER OPERATIONAL SUMMARY
During the third quarter, Novus continued to implement its business strategy of creating sustainable growth in reserves, production and cash flow through the drilling of its high quality, long life, light oil properties.
Starting in 2010, the current management team's first full year of operations, the Company's focus was the appraisal of its significant Viking light oil resource with an emphasis on optimizing the drilling and completion technology. With continual refinement, the Company has implemented several cost and time saving changes in the completion of its horizontal Viking wells and is now extremely pleased that the majority of wells are placed on production in less than a week after the commencement of completion operations. Well costs in the greater Dodsland area continue to decrease, with costs for drilling and completions on the Company's 2011 wells averaging approximately $835 thousand, tie in costs averaging $95 thousand and all in on stream costs averaging $930 thousand per well.
In 2011, the Company evolved into a large scale development phase of its Viking resource. With 33 wells drilled in 2010 and 52 wells drilled to date in 2011, Novus is now one of the most active drillers in the industry in the Viking play.
The Company has been pleased with the performance of the wells and the stable nature of the production to date from its 2011 drilling program. Novus has drilled wells in its Flaxcombe, Whiteside, Kerrobert, Forgan, Plato, Plenty and Dodsland sub regions. Results from the Flaxcombe sub region have been particularly encouraging. The Company has determined that these previously undrilled lands are characterized by two distinct cycles in the Viking formation. The Company has now drilled 18 horizontal wells targeting both the lower and upper cycle. Virgin pressures realized on these wells have been up to 7,600 KPa which are amongst the highest pressures the Company has recorded in any of its Viking wells drilled thus far. Novus has mapped over ten sections of its lands where both cycles are present and expects this area will allow for the development of each cycle independently. This will add at least 80 drilling locations to the Company's existing drilling inventory of 573 net Viking oil locations. Reserves and production growth will also significantly increase as development of the two distinct Viking cycles progresses. Production from the recently drilled wells in the area has exceeded expectations, and is supportive of the significant longer term potential the Company believes the area exhibits.
Upgrades at Novus' owned and operated facilities at Whiteside and Avon Hills continued in the third quarter increasing fluid handling capacities at each facility. An exclusive agreement was signed with a third party late in the quarter to take all of the Company's wet solution gas from Whiteside. Construction of a 4 inch sales gas line as well as an 6 inch emulsion line from the Whiteside facility to the meter station is almost complete. Five additional wells in the area will be tied in and are expected to be on-stream conserving gas by mid December. Once the infrastructure routing has been completed to the west of the Whiteside facility, Novus plans on bringing in additional third party gas volumes. The processing and transportation fees Novus will earn will reduce ongoing operating costs.
With the Company's success in Flaxcombe this year, and aggressive development planned for the area in 2012, Novus is in the process of preparing to run a major group/emulsion line to the center of the Flaxcombe field which will serve as a gathering point for oil and gas produced from the newly drilled wells. The existing 18 wells in the area will be also be tied into this facility and then sent up to Whiteside. Novus expects to have an entire closed system in the area which will alleviate downtime due to weather or other bottlenecks. Construction on this project is expected to commence early in the new year. Once completed, the system will greatly enhance operating efficiencies and reduce area operating costs.
The Viking play continues to drive strong economics. The Company is enjoying predictable production, operational efficiencies, favorable royalties and high netbacks.
OUTLOOK
Novus will continue to execute its business plan of creating sustainable growth in reserves, production and funds flows through developing its high quality, long life, Viking oil assets at Dodsland, Saskatchewan. The Company plans on maintaining an aggressive drilling program on its current acreage, and will continue its efforts to further consolidate and expand its position within the Dodsland area through further acquisitions.
Novus delivered strong operational and financial results and executed a record development drilling program in the third quarter. The Company remains on track to achieve its exit production rate of 3,000 boe/d, and is currently producing an estimated 2,850 boe/d based on field reports.
The Company has more than 573 net low risk drilling locations on its Viking lands. The depth of the Company's drilling inventory positions the Company well for long term sustainable growth in production, reserves and net asset value. With operatorship of the vast majority of its Saskatchewan acreage, Novus enjoys significant flexibility on the timing and scale of its capital programs going forward.
The Company has grown on the increasing strength of its cash generating capabilities, and this positive momentum will continue to fuel its growth in 2012. Novus will continue to be active in drilling its core Viking oil play in Dodsland in 2012 and remains focused on the acceleration of its growth profile.
INTERNATIONAL FINANCIAL REPORTING STANDARDS
On January 1, 2011, the Company adopted International Financial Reporting Standards ("IFRS") for financial reporting purposes, using a transition date of January 1, 2010. The unaudited condensed interim financial statements as at and for the three and nine months ended September 30, 2011, have been prepared in accordance with IFRS. Comparative information has been restated from the previously published financial statements which were prepared in accordance with Canadian Generally Accepted Accounting Principles ("GAAP").
NON-GAAP FINANCIAL MEASUREMENTS
Included in this press release are references to certain financial measures commonly used in the oil and gas industry, such as funds flow from operations, operating netbacks and net debt. These measures have no standardized meanings, are not defined by IFRS or Canadian GAAP, and accordingly are referred to as non-GAAP measures.
The Company considers funds flow from operations to be a key measure as it demonstrates the Company's ability to generate the cash necessary to repay debt and to fund future growth through capital investment. Novus determines funds flow from operations as cash provided by (used in) operating activities prior to changes in non-cash working capital items and decommissioning expenditures. The determination of the Company's' funds flow from operations may not be comparable to the same as reported by other companies.
Operating netbacks are calculated by deducting royalties, field operations and transportation and marketing expenses from production revenue. Operating netbacks are used by management to assess operating results between periods and between peer companies as they provide an indication of results generated by the Company's principal business activities before the consideration of how these activities are financed or how the results are taxed. Novus' reported amounts may not be comparable to similarly titled measures reported by other companies. These terms should not be considered an alternative to, or more meaningful than, cash provided by operating, investing and financing activities or net income as determined by IFRS or Canadian GAAP as an indicator of the Company's performance or liquidity.
Net debt is calculated as current assets less all current liabilities, including any bank debt. The Company monitors net debt as part of its capital structure.
OTHER MEASUREMENTS
Reported production represents Novus' ownership share of sales before the deduction of royalties. Where amounts are expressed on a barrel of oil equivalent ("boe") basis, natural gas has been converted at a ratio of six thousand cubic feet to one boe. This ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Boe's may be misleading, particularly if used in isolation. References to natural gas liquids ("liquids") include condensate, propane, butane and ethane and one barrel of liquids is considered to be equivalent to one boe.
Novus Energy Inc. is a well positioned, junior oil and gas company with a proven management team committed to aggressive, cost-effective growth of high netback light oil reserves and production. Novus will continue to grow through a targeted acquisition and consolidation strategy coupled with development and exploration drilling.
Novus Shares trade on the TSX Venture Exchange under the symbol NVS. Novus currently has 169.0 million common shares outstanding.
Neither the 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.
This news release will not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. Such securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States, or to a U.S. person, absent registration, or an applicable exemption therefrom.
ADVISORY REGARDING FORWARD LOOKING STATEMENTS
Certain disclosures set forth in this press release constitute forward-looking statements. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believes", "budget", "continue", "could", "estimate", "expects", "forecast", "intends", "may", "plan", "predicts", "projects", "should", "will" and other similar expressions. All estimates and statements that describe the Company's future, goals, or objectives, including Management's assessment of future plans and operations, may constitute forward-looking information under securities laws. Forward-looking statements involve known and unknown risks and uncertainties which include, but are not limited to: exploration, development and production risks; assessments of acquisitions; reserve measurements; availability of drilling equipment; access restrictions; permits and licenses; aboriginal claims; title defects; commodity prices; commodity markets; transportation and marketing of crude oil, liquids and natural gas; reliance on operators and key personnel; competition; corporate matters; funding requirements; access to credit and capital markets; market volatility; cost inflation; foreign exchange rates; general economic and industry conditions; environmental risks; Kyoto protocol; and government regulation and taxation.
Forward-looking statements relate to future events and/or performance and although considered reasonable by Novus at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated in the statements made. Novus does not undertake any obligation to publicly update forward-looking information except as required by applicable securities law.
Contacts:
NOVUS ENERGY INC.
Hugh G. Ross
President and CEO
(403) 218-8895
Ketan Panchmatia
Chief Financial Officer
(403) 218-8876
Julian Din
VP Business Development
(403) 218-8896
Novus Energy Inc. announces normal course issuer bid
Press Release Source: Novus Energy Inc. On Monday September 12, 2011, 8:00 am
http://finance.yahoo.com/news/Novus-Energy-Inc-announces-cnw-1166360513.html?x=0&.v=1
CALGARY , Sept. 12, 2011 /CNW/ - Novus Energy Inc. ("Novus" or the "Company") (TSXV:NVS.V) announces that it intends to make a normal course issuer bid through the facilities of the TSX Venture to buy up to 5,000,000 of its issued and outstanding Common Shares. This amount represents approximately 3% of Novus' 169.5 million issued and outstanding Common Shares. The bid will commence September 15, 2011 and expire September 14, 2012 and any shares acquired pursuant to the bid will be cancelled. The bid will be conducted through National Bank Financial Inc., a member of the TSX Venture Exchange.
Novus' reasoning for the normal course issuer bid is that from time to time the purchase of Common Shares for cancellation will increase the proportionate interest of, and be advantageous to, all remaining shareholders. In addition, any purchases made by Novus will afford increased liquidity to those shareholders of the Company who may wish to dispose of their Common Shares.
Novus Energy Inc. is a well positioned, junior oil and gas company with a proven management team committed to aggressive, cost-effective growth of high netback light oil reserves and production. Novus will continue to grow through a targeted acquisition and consolidation strategy coupled with development and exploration drilling.
Novus Shares trade on the TSX Venture Exchange under the symbol NVS. Novus currently has 169.5 million common shares outstanding.
Neither the 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.
This news release will not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. Such securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States , or to a U.S. person, absent registration, or an applicable exemption therefrom.
ADVISORY REGARDING FORWARD LOOKING STATEMENTS
Certain disclosures set forth in this press release constitute forward-looking statements. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believes", "budget", "continue", "could", "estimate", "forecast", "intends", "may", "plan", "predicts", "projects", "should", "will" and other similar expressions. All estimates and statements that describe the Company's future, goals, or objectives, including Management's assessment of future plans and operations, may constitute forward-looking information under securities laws. Forward-looking statements involve known and unknown risks and uncertainties which include, but are not limited to: exploration, development and production risks; assessments of acquisitions; reserve measurements; availability of drilling equipment; access restrictions; permits and licenses; aboriginal claims; title defects; commodity prices; commodity markets; transportation and marketing of crude oil, liquids and natural gas; reliance on operators and key personnel; competition; corporate matters; funding requirements; access to credit and capital markets; market volatility; cost inflation; foreign exchanges rates; general economic and industry conditions; environmental risks; Kyoto protocol; and government regulation and taxation.
Forward-looking statements relate to future events and/or performance and although considered reasonable by Novus at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated in the statements made. Novus does not undertake any obligation to publicly update forward-looking information except as required by applicable securities law.
Novus Energy Inc. announces second quarter 2011 financial and operating results
Press Release Source: Novus Energy Inc. On Friday August 26, 2011, 8:00 am EDT
http://finance.yahoo.com/news/Novus-Energy-Inc-announces-cnw-1354087890.html?x=0&.v=1
CALGARY, Aug. 26, 2011 /CNW/ - Novus Energy Inc. ("Novus" or the "Company") (TSXV:NVS.V) announces that it has filed its unaudited condensed interim financial statements and management's discussion and analysis ("MD&A") as at and for the three and six months ended June 30, 2011. These may be accessed through the SEDAR website www.sedar.com and at the Company's website http://www.novusenergy.ca.
Novus is pleased to report that its 2011 Viking oil drilling program continues to progress on schedule. The Company has now successfully drilled 39 Viking oil wells in the Dodsland area of Saskatchewan, with 32 of these wells having been completed. Thirty of the wells that have been completed have been placed on production, with the remainder to follow. Costs in the greater Dodsland area continue to meet the Company's budget, with estimated per well costs for drilling and completions on the Company's first 32 wells averaging approximately $835,000.
Total estimated field level corporate production as of August 25, 2011 was approximately 2,625 boe/d, with approximately 78% of production comprised of oil and liquids. Novus expects production will continue to steadily increase through the balance of the year as additional wells are drilled and placed on production. The Company expects to show significant production growth in the second half of the year and expects to comfortably meet its 2011 exit rate guidance of 3,000 boe/d, weighted 80% to oil and liquids production, early in the fourth quarter.
With recent land acquisitions in the Dodsland area, Novus now controls 124.25 net sections of Viking rights, and has identified 601 net risked, undrilled Viking oil locations.
FINANCIAL HIGHLIGHTS
• For the three months ended June 30, 2011, Novus' gross revenue increased 168% to $8.29 million compared to $3.09 million recorded in the comparative period in 2010. For the six months ended June 30, 2011, gross revenue was $17.16 million, compared to $6.08 million in the comparative period of 2010, representing a 182% increase.
• Funds flow from operations was $2.94 million in the second quarter of 2011, versus an outflow of $711 thousand for the comparative three month period of 2010. For the first half of 2011, funds flow from operations was $6.15 million, compared to an outflow of $796 thousand recorded in the first half of 2010.
• Novus' capital program for the three month period ended June 30, 2011, was $18.13 million, versus $20.13 million spent in the comparative period of 2010. Novus' capital program for the first six months of the year was $30.38 million, compared to $26.06 million spent in the first six months of 2010. These figures are exclusive of the non-cash transactions and business combinations, which occurred in 2010.
• Subsequent to quarter end, the Company increased its credit facilities to $60 million, consisting of a $50 million revolving operating demand loan and a $10 million acquisition/development demand loan. The Company's borrowing capacity has increased substantially from the $28 million of credit facilities which were available to it at the beginning of 2011.
• At June 30, 2011, the Company had net debt of $23.85 million.
• The Company currently has outstanding 22.64 million in-the-money warrants expiring March 31, 2012, which, upon exercise, would result in proceeds of $16.98 million being realized by the Company.
OPERATIONAL HIGHLIGHTS
• Average daily production for the second quarter of 2011 increased 70% to 1,318 boe/d compared to 774 boe/d recorded in the corresponding period in 2010. Average daily production for the first six months of 2011 was 1,430 boe/d, up 93% from the 742 boe/d recorded in the corresponding period in 2010.
• Average crude oil and liquids production for the second quarter of 2011 was up 162% to 844 bbls/d versus 322 bbls/d in the comparative quarter of 2010. Natural gas production averaged 2,841 mcf/d for the second quarter of 2011, a 5% increase from 2,717 mcf/d in the comparative period of 2010.
• Average crude oil and liquids production for the first six months of 2011 was up 215% to 940 bbls/d versus 298 bbls/d in the comparative period of 2010. Natural gas production averaged 2,940 mcf/d, a 10% increase from 2,669 mcf/d in the comparative period of 2010.
• Current production is approximately 2,625 boe/d, weighted 78% towards oil and liquids.
• During the second quarter of 2011, Novus participated in the drilling of 19 wells (19.0 net), 14 of which were Viking horizontal oil wells in the greater Dodsland area. Fifteen wells (15.0 net) were completed, with six of them onstream by June 30, 2011.
• Novus now controls 124.25 net sections in its Dodsland Viking core area, and has a multi-year risked drilling inventory of 601 net Viking horizontal oil wells.
• Novus acquired a 100% working interest in approximately 55 net sections of land with rights in the oil bearing Birdbear formation of southwestern Saskatchewan. This acquisition complements the 24 net sections of land Novus currently owns targeting this formation. These lands are located in the immediate vicinity of the Company's Dodsland Viking lands and provide the Company with an exciting opportunity to target another prolific, emerging oil resource play, while maintaining operational synergies. The Company will likely be dedicating some of this year's capital expenditure program towards the shooting of 3D seismic and the potential drilling of a number of Birdbear locations.
• The upgrades at Novus' owned and operated facilities at Whiteside and Avon Hills have now been completed. Gas production from the Whiteside area is currently being conserved with a number of additional pipelines being surveyed to handle new solution gas volumes from our current drilling program.
In the first half of 2011, Novus drilled 17 net horizontal Viking oil wells. Completion operations were hampered by wet weather, and production from the wells was not tied in until the end of the second quarter and early in the third quarter of the year. With completion operations delayed, the Company's Viking oil drilling program did not materially contribute to production levels in the second quarter of 2011. Production for the second quarter of 2011 was also impacted by prolonged third party plant maintenance at Wembley which resulted in production from the area being shut-in for nearly six weeks of the quarter. Prior to, and subsequent to being shut-in, the Wembley property was producing approximately 180 boe/d.
Novus is pleased with the performance of the wells and the stable nature of the production to date from its current drilling program. The Company has drilled wells in its Flaxcombe, Whiteside, Kerrobert, Forgan, Plato, Plenty and Dodsland regions that are expected to meet or exceed internal type curve forecasts of 48 bbls/d of initial oil production. The Company now has several wells with at least 60 days of production history, and these wells are now averaging 64 bbls/d of oil per well. Results from the Flaxcombe sub area in the Dodsland region have been extremely encouraging. The Company has determined that these previously undrilled lands are characterized by two distinct cycles in the Viking formation. The Company has now drilled horizontal wells targeting both the lower and upper cycle. Current production rates from wells in this area which have been on production for at least 60 days are 80 bbls/d of oil per well. Virgin pressures realized on these wells have been up to 7,600 KPa which are amongst the highest pressures the Company has recorded in any of its Viking wells drilled thus far. Novus has mapped over ten sections of its lands where both cycles are present and expects this area to add at least 80 drilling locations to its existing drilling inventory of 601 net Viking oil locations. Reserves and production growth will also increase as development of the two distinct Viking cycles progresses. Production from the recently drilled wells has far exceeded expectations, and is supportive of the longer term potential the Company believes the area exhibits.
Based upon the production rates, recoverable reserves, and drilling and completion costs in the Dodsland area the Company has experienced to date, Novus plans on maintaining an aggressive drilling program on its current acreage, and will continue its efforts to further consolidate and expand its position within the area through acquisitions. Novus has been one of the most active operators in the Dodsland area, and with the success it has enjoyed to date, the Company plans to continually expand its already significant position in the area. Novus is also excited to commence drilling operations shortly on its first horizontal Viking light oil well in Alberta. Based upon success, the Company would pursue numerous other locations in the area throughout 2012.
Novus will be operating approximately 98% of the capital expenditures it incurs in 2011, which gives the Company significant flexibility on the timing and scale of its capital program. Novus is well positioned financially, and as operator of the vast majority of its capital program, the Company has the flexibility to accelerate its drilling with continued success.
A summary of financial and operational results for the three and six month periods ended June 30, 2011, along with the comparative periods, are outlined in the following table:
http://www.novusenergy.ca/en/investor/nvs-2011-08-25-pressreleaseq2_2011.pdf
INTERNATIONAL FINANCIAL REPORTING STANDARDS
On January 1, 2011, the Company adopted International Financial Reporting Standards ("IFRS") for financial reporting purposes, using a transition date of January 1, 2010. The unaudited condensed interim financial statements as at and for the three and six months ended June 30, 2011, have been prepared in accordance with IFRS. Comparative information has been restated from the previously published financial statements which were prepared in accordance with Canadian Generally Accepted Accounting Principles ("GAAP").
NON-GAAP FINANCIAL MEASUREMENTS
Included in this press release are references to certain financial measures commonly used in the oil and gas industry, such as funds flow from (used in) operations, operating netbacks and net debt. These measures have no standardized meanings, are not defined by IFRS or Canadian GAAP, and accordingly are referred to as non-GAAP measures.
The Company considers funds flow from (used in) operations to be a key measure as it demonstrates the Company's ability to generate the cash necessary to repay debt and to fund future growth through capital investment. Novus determines funds flow from (used in) operations as cash provided by (used in) operating activities prior to changes in non-cash working capital items and decommissioning expenditures. The determination of the Company's' funds flow from (used in) operations may not be comparable to the same as reported by other companies.
Operating netbacks are calculated by deducting royalties, field operations and transportation and marketing expenses from production revenue. Operating netbacks are used by management to assess operating results between periods and between peer companies as they provide an indication of results generated by the Company's principal business activities before the consideration of how these activities are financed or how the results are taxed. Novus' reported amounts may not be comparable to similarly titled measures reported by other companies. These terms should not be considered an alternative to, or more meaningful than, cash provided by operating, investing and financing activities or net income as determined by IFRS or Canadian GAAP as an indicator of the Company's performance or liquidity.
Net debt is calculated as current assets less all current liabilities, including the current portion of any bank debt. The Company monitors net debt as part of its capital structure.
OTHER MEASUREMENTS
Reported production represents Novus' ownership share of sales before the deduction of royalties. Where amounts are expressed on a barrel of oil equivalent ("boe") basis, natural gas has been converted at a ratio of six thousand cubic feet to one boe. This ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Boe's may be misleading, particularly if used in isolation. References to natural gas liquids ("liquids") include condensate, propane, butane and ethane and one barrel of liquids is considered to be equivalent to one boe.
Novus Energy Inc. is a well positioned, junior oil and gas company with a proven management team committed to aggressive, cost-effective growth of high netback light oil reserves and production. Novus will continue to grow through a targeted acquisition and consolidation strategy coupled with development and exploration drilling.
Novus Shares trade on the TSX Venture Exchange under the symbol NVS. Novus currently has 169.6 million common shares outstanding.
Neither the 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.
This news release will not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. Such securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States, or to a U.S. person, absent registration, or an applicable exemption therefrom.
ADVISORY REGARDING FORWARD LOOKING STATEMENTS
Certain disclosures set forth in this press release constitute forward-looking statements. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believes", "budget", "continue", "could", "estimate", "expects", "forecast", "intends", "may", "plan", "predicts", "projects", "should", "will" and other similar expressions. All estimates and statements that describe the Company's future, goals, or objectives, including Management's assessment of future plans and operations, may constitute forward-looking information under securities laws. Forward-looking statements involve known and unknown risks and uncertainties which include, but are not limited to: exploration, development and production risks; assessments of acquisitions; reserve measurements; availability of drilling equipment; access restrictions; permits and licenses; aboriginal claims; title defects; commodity prices; commodity markets; transportation and marketing of crude oil, liquids and natural gas; reliance on operators and key personnel; competition; corporate matters; funding requirements; access to credit and capital markets; market volatility; cost inflation; foreign exchanges rates; general economic and industry conditions; environmental risks; Kyoto protocol; and government regulation and taxation.
Forward-looking statements relate to future events and/or performance and although considered reasonable by Novus at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated in the statements made. Novus does not undertake any obligation to publicly update forward-looking information except as required by applicable securities law.
Novus Energy Inc. announces increase to its credit facilities and operational update
Press Release Source: Novus Energy Inc. On Monday August 15, 2011, 12:59 pm EDT
http://finance.yahoo.com/news/Novus-Energy-Inc-announces-cnw-26670990.html?x=0&.v=1
CALGARY, Aug. 15, 2011 /CNW/ - Novus Energy Inc. ("Novus" or the "Company") is pleased to announce that it has obtained an increase to its credit facilities to $60 million up from the previous $40 million. The new facilities comprised of a $50 million revolving operating demand loan and a $10 million acquisition and development demand loan, will be used to assist with the Company's 2011 drilling program.
The Company's 2011 Viking oil drilling program continues to progress on schedule. The Company has now successfully drilled 34 Viking oil wells in the Dodsland area of Saskatchewan, with 30 of these wells having been completed. Twenty-six of the wells that have been completed have been placed on production, with the remainder to follow. Novus is pleased with the initial rates the first wells have demonstrated to date. Drilling and completion costs in the Dodsland area continue to meet the Company's budgeted figures of $850,000 per well.
Total estimated field level corporate production as of August 12, 2011 was approximately 2,425 boe/d. Novus expects production will continue to steadily increase through the balance of the year as additional wells are drilled and placed on production.
With recent land acquisitions in the Dodsland area, Novus now controls 124.25 net sections of Viking rights, and has identified 601 net undrilled Viking oil locations.
Novus Energy Inc. is a well positioned, junior oil and gas company with a proven management team committed to aggressive, cost-effective growth of high netback light oil reserves and production. Novus will continue to grow through a targeted acquisition and consolidation strategy coupled with exploratory and development drilling.
Novus Shares trade on the TSX Venture Exchange under the symbol NVS. Novus currently has 169.7 million common shares outstanding.
Neither the 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.
This news release will not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. Such securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States, or to a U.S. person, absent registration, or an applicable exemption therefrom.
Advisory Regarding Forward Looking Statements
Certain disclosures set forth in this press release constitute forward-looking statements. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believes", "budget", "continue", "could", "estimate", "forecast", "intends", "may", "plan", "predicts", "projects", "should", "will" and other similar expressions. All estimates and statements that describe the Company's future, goals, or objectives, including Management's assessment of future plans and operations, may constitute forward-looking information under securities laws. Forward-looking statements involve known and unknown risks and uncertainties which include, but are not limited to: exploration, development and production risks; assessments of acquisitions; reserve measurements; availability of drilling equipment; access restrictions; permits and licenses; aboriginal claims; title defects; commodity prices; commodity markets, transportation and marketing of crude oil, liquids and natural gas; reliance on operators and key personnel; competition; corporate matters; funding requirements; access to credit and capital markets; market volatility; cost inflation; foreign exchange rates; general economic and industry conditions; environmental risks; Kyoto protocol; and government regulation and taxation.
Forward-looking statements relate to future events and/or performance and although considered reasonable by Novus at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated in the statements made. Novus does not undertake any obligation to publicly update forward-looking information except as required by applicable securities law.
Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Novus' operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), and at Novus' website (www.novusenergy.ca). The forward-looking statements and information contained in this press release are made as of the date hereof and Novus undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Canadian E&P Spotlight: Saskatchewan Viking Oil
A hotbed of horizontal activity in west
central Saskatchewan
CANACCORD Research Report
June 23, 2011
http://petroviking.com/pdf/CG-Sask-Viking-Resource-Q2_2011.pdf
NOVUS ENERGY INC. ANNOUNCES UPDATE ON ITS VIKING LIGHT
OIL DRILLING PROGRAM IN DODSLAND SASKATCHEWAN
CALGARY, ALBERTA, July 20, 2011 – Novus Energy Inc. (“Novus” or the “Company”) is pleased to announce that the Company is now halfway through its 2011 Viking oil drilling program, and has now successfully drilled 26 Viking oil wells in the Dodsland area of Saskatchewan, with 20 of these wells having been completed. Seventeen of the wells that have been completed have been placed on production, with the remainder to follow. Novus is pleased with the initial rates the first wells have demonstrated to date. Drilling and completion costs in the Dodsland area continue to meet the Company’s budgeted figures of $850,000 per well. Novus expects to provide a further update in August, as more wells are completed, and more production data is collected.
With two drilling rigs running, Novus expects to drill a total of 52 net Viking oil wells in the Dodsland area by the end of the third quarter of 2011, and complete a total of 46 wells, assuming normal summer weather, by the end of September 2011. The remaining wells will be completed early in the fourth quarter of the year.
Total estimated field level corporate production as of July 18, 2011 was approximately 2,120 boe/d. Novus expects production will continue to steadily increase through the balance of the third quarter as additional wells are drilled and placed on production. The Company is comfortable that given the progression of its drilling plans and results to date, that it will meet its previously announced exit rate guidance of 3,000 boe/d. The Company’s anticipated exit rate of 3,000 boe/d represents a near doubling of production from the 1,544 boe/d the Company reported in its first quarter of 2011.
[the rest]
http://www.novusenergy.ca/en/investor/nvs-2011-07-20-pressrelease.pdf
I agree; the outstanding shares must be cut off. Maybe that is why I sometimes call it Nervous Energy! Love the company, but not the high number of shares.
sumi
Novus Announces 1st Quarter Results-
http://www.novusenergy.ca/en/investor/nvs-2011-06-14-pressreleaseq1.pdf
futr
ps this company seems to have a Great future-
Now if only they would cut off new share issuance @ close to current levels!
NOVUS ENERGY INC. ANNOUNCES COMMENCEMENT OF DRILLING PROGRAM ON ITS VIKING LANDS IN DODSLAND SASKATCHEWAN
Press Release Source: Novus Energy Inc. On Tuesday May 24, 2011, 8:00 am EDT
http://finance.yahoo.com/news/NOVUS-ENERGY-INC-ANNOUNCES-cnw-695885972.html?x=0&.v=1
CALGARY, May 24 /CNW/ - Novus Energy Inc. ("Novus" or the "Company") is pleased to announce that the Company has commenced drilling operations on its core land position in the Dodsland area of Saskatchewan. Immediately after the removal of road bans, Novus spudded its first well on May 11, 2011 in the Dodsland area. A second rig was mobilized to the field and drilling operations began on May 22, 2011.
With two rigs now running, Novus expects to drill 52 net wells in the Dodsland area by the end of the third quarter, and 20 by the end of the second quarter. All support services for the drilling operations have been contracted and all pipe and wellheads are secured. A long term contract has been entered into with a large frac company allowing Novus to utilize four frac days per week commencing May 31, 2011. A total of 46 wells are anticipated to be completed and on production, assuming normal summer weather, by the end of September 2011, with 10 wells expected to be producing by the end of the second quarter. To enhance the turnaround time from the completion of wells to production being brought onstream, two full time crews have been contracted and are devoted to surface installations. To support this project, all of the required tanks, hydraulic pumping units, rods, bottom hole pumps and wellheads have been delivered and are all on the ground in Kindersley, the main staging area for Company operations.
Upgrades at both of Novus' owned and operated facilities are set to commence in mid June 2011. Plans are underway to increase the treating capacity in our Whiteside facility from 800 boe/d to over 3,000 boe/d through the installation of further tankage and a treater and should be completed by quarter end. Immediately following completion, work will commence on our second facility in Avon Hills to bring the treating capacity up to 1,000 boe/d from the current 600 boe/d capacity and is expected to take around seven days to complete. Gas production from the Whiteside area is currently being conserved with a number of additional pipelines being surveyed to handle new solution gas from our current program.
The Company has previously provided guidance for an average production rate of approximately 2,400 boe/d for the year and an exit production rate of 3,000 boe/d with approximately 85% of exit production volumes comprised of oil and liquids. With wet weather conditions early in the year, the Company managed to drill three wells in the Dodsland area in the first quarter, and did not complete any of the wells drilled. As a result, the Company is now guiding for an average production rate of 2,125 boe/d for the year. The Company expects it will achieve its exit rate guidance of 3,000 boe/d and anticipates reaching this level early in the fourth quarter of the year.
The Company is also pleased to announce that it has obtained an increase to its credit facilities to $40 million up from the previous $28 million. The new facilities, comprised of a $30 million revolving operating demand loan and a $10 million acquisition and development demand loan, will be used to assist with the Company's 2011 drilling program.
The 2011 capital program will exclusively be devoted to oil development activities and entails the drilling of 60 wells (57 net), the majority of which will be horizontal wells targeting light Viking oil at Dodsland, Saskatchewan. Novus will be operating 98% of the capital expenditures it incurs in 2011, which gives the Company significant flexibility on the timing and scale of its capital program.
With recent land sale acquisitions the Company now has a total of 584 high quality risked Viking locations on its 112.75 sections of land in Dodsland. At the time of this press release the Company has 90 well licenses issued which prepares it for its drilling program into 2012.
Novus obtained a Contingent Resource Assessment (the "Report") from Sproule Associates Limited effective November 30, 2010 (as previously disclosed in a press release issued by Novus Energy Inc. on December 6, 2010) which identified a "best estimate" of Discovered Petroleum Initially-In-Place ("DPIIP") of 559.5 Million Barrels of light Viking oil on the Company's working interest and option lands. The Report recognized approximately 54 net sections controlled by Novus as containing DPIIP. Novus believes that with its large drilling program and active competitor programs, Novus' already large discovered petroleum in place of 559.5 Million Barrels is set to increase materially over the year.
OTHER MEASUREMENTS
Reported production represents Novus' ownership share of sales before the deduction of royalties. Where amounts are expressed on a barrel of oil equivalent ("boe") basis, natural gas has been converted at a ratio of six thousand cubic feet to one boe. This ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Boe's may be misleading, particularly if used in isolation. References to natural gas liquids ("liquids") include condensate, propane, butane and ethane and one barrel of liquids is considered to be equivalent to one boe.
Novus Energy Inc. is a well positioned, junior oil and gas company with a proven management team committed to aggressive, cost-effective growth of high netback light oil reserves and production. Novus will continue to grow through a targeted acquisition and consolidation strategy coupled with exploratory and development drilling.
Novus Shares trade on the TSX Venture Exchange under the symbol NVS. Novus currently has 170.2 million common shares outstanding.
Neither the 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.
This news release will not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. Such securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States, or to a U.S. person, absent registration, or an applicable exemption therefrom.
Advisory Regarding Forward Looking Statements
Certain disclosures set forth in this press release constitute forward-looking statements. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believes", "budget", "continue", "could", "estimate", "forecast", "intends", "may", "plan", "predicts", "projects", "should", "will" and other similar expressions. All estimates and statements that describe the Company's future, goals, or objectives, including Management's assessment of future plans and operations, may constitute forward-looking information under securities laws. Forward-looking statements involve known and unknown risks and uncertainties which include, but are not limited to: exploration, development and production risks; assessments of acquisitions; reserve measurements; availability of drilling equipment; access restrictions; permits and licenses; aboriginal claims; title defects; commodity prices; commodity markets, transportation and marketing of crude oil, liquids and natural gas; reliance on operators and key personnel; competition; corporate matters; funding requirements; access to credit and capital markets; market volatility; cost inflation; foreign exchange rates; general economic and industry conditions; environmental risks; Kyoto protocol; and government regulation and taxation.
Forward-looking statements relate to future events and/or performance and although considered reasonable by Novus at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated in the statements made. Novus does not undertake any obligation to publicly update forward-looking information except as required by applicable securities law.
Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Novus' operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), and at Novus' website (www.novusenergy.ca). The forward-looking statements and information contained in this press release are made as of the date hereof and Novus undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Selling @ the price of their most recent PP here-
NOVUS ENERGY INC. ANNOUNCES YEAR END 2010 FINANCIAL AND OPERATIONAL RESULTS
Press Release Source: Novus Energy Inc. On Thursday April 14, 2011, 8:00 am EDT
http://finance.yahoo.com/news/NOVUS-ENERGY-INC-ANNOUNCES-cnw-2698266350.html?x=0&.v=1
I agree; there has not been any news recently and trading activity has tapered off.
I still in with 10,000 shares and hope their properties justify my holdings.
The mentioning of property in the Canadian Bakken interests me most.
sumi
Looking mighty tempting down @ this range yet again-
futr
"Novus Energy Inc. is a well positioned, junior oil and gas company with a proven management team committed
to aggressive, cost-effective growth of high netback light oil reserves and production. Novus will continue to
grow through a targeted acquisition and consolidation strategy coupled with development and exploration
drilling. Novus’ strong financial position and unused lines of credit will allow for the exploitation of its drilling
inventory and expansion of the Company’s opportunity suite through internally generated prospects and strategic
light oil acquisitions."
futr, I like the emphasis of Novus management on oil, especaially since we are entering into a Peak Oil period.
sumi
Enery Types: Light and Medium Oil; Heavy Oil; Natural Gas Liquuids; Natural Gas; Barrel of Oil Equivalent Light and Medium Heavy Oil NG LIQ NG BOE
Gross Net Gross Net Gross Net Gross Net Gross Net
(Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mmcf) (Mmcf) (Mboe) (Mboe)
Proved
Producing 1,174.6 984.2 - - 62.1 43.5 3,629 3,021 1,841.5 1,531.3
Non-Producing 26.3 23.5 - - 0.7 0.6 59 49 36.8 32.2
Undeveloped 2,583.8 2,375.5 63.7 52.6 8.2 7.0 1,774 1,580 2,951.3 2,698.4
_____________________________________________________________________________________________
Total Proved 3,784.7 3,383.3 63.7 52.6 70.9 51.1 5,462 4,650 4,829.6 4,261.9
Probable 3,626.3 3,289.4 132.3 109.1 52.4 36.9 3,587 3,080 4,408.7 3,948.8
____________________________________________________________________________________________
Total Proved plus
Probable 7,410.9 6,672.7 196.0 161.7 123.3 88.0 9,048 7,730 9,238.3 8,210.7
Table of Land Holdings
A summary of the Company’s land holdings at December 31, 2010 is outlined below:
(acres) Developed Undeveloped Total
Gross Net Gross Net Gross Net
Alberta 69,910 36,010 44,160 26,664 114,070 62,674
Saskatchewan 17,694 11,965 95,914 84,060 113,608 96,025
Other 1,943 1,347 1,943 932 3,886 2,279
Total 89,547 49,322 142,017 111,656 231,564 160,978
Land Holdings-
Nice Report btw-excellent Oil production growth-
Corporate Presentation - February 2011
http://www.novusenergy.ca/en/documents/presentation/nvs-2011-02-web.pdf
NOVUS ENERGY INC. REPORTS SIGNIFICANT 2010 RESERVES & PRODUCTION GROWTH AND PROVIDES OPERATIONAL UPDATE
3-15-2011
http://www.novusenergy.ca/en/investor/nvs-2011-03-15-pr.pdf
NOVUS ENERGY INC. ANNOUNCES 2011 CAPITAL BUDGET & PRODUCTION GUIDANCE
CALGARY, Feb. 3 - Novus Energy Inc. ("Novus" or the "Company") (TSXV: NVS) is pleased to announce that its Board of Directors has approved a 2011 Capital Budget of $60 million for exploration and development activities. This budget is expected to generate an average production rate of approximately 2,400 boe/d for the year and an exit production rate of approximately 3,000 boe/d, with approximately 80% of average production volumes and 85% of exit production volumes comprised of oil and liquids.
http://www.novusenergy.ca/en/investor/nvs-2011-02-03-pr.pdf
NOVUS ENERGY INC. ANNOUNCES STRONG VIKING LIGHT OIL PRODUCTION GROWTH IN 2010
Press Release Source: Novus Energy Inc. On Monday January 17, 2011, 8:00 am EST
CALGARY, Jan. 17 /CNW/ - Novus Energy Inc. ("Novus" or the "Company") (CDNX:NVS.V) is pleased to announce that it has significantly increased its light oil production during 2010, and has reached its corporate exit rate production target.
HIGHLIGHTS
- Estimated field level production at the end of 2010 was approximately 2,050 boe/d with approximately 66% of these volumes comprised of oi and liquids.
- During 2010 Novus achieved a 100% success rate on its Dodsland are Viking oil drilling campaign. Novus operated the drilling of 33, 100% working interest wells, all using horizontal multi stage frac technology. 31 of these wells had been completed by year end and were contributing to estimated year end production figures.
- At year end 2010, field level Viking oil production from the Dodsland area was estimated to be approximately 1,095 b/d. Novus is pleased with the volume increases it has achieved in its Dodsland Viking light oil assets from its highly successful 2010 drilling program. During the course of 2010, Novus was able to increase oil production in this area from approximately 30 b/d to 1,095 b/d.
- Based on December field estimates, production for the fourth quarter of 2010 is estimated to be approximately 1,525 boe/d with oil and liquids comprising an estimated 62% of the total production levels. The majority of the Viking oil wells drilled by the Company in the latter part of 2010 were completed and placed on production very near to year end, and did not meaningfully contribute to production level for the quarter.
- Novus estimates that it ended the 2010 fiscal year with no debt, undrawn lines of credit of $28 million, and positive working capital.
- Novus continued to expand its land base in the Dodsland Viking light oil resource throughout the year, and currently has approximately 110 net sections of land in the area. 575 high quality locations have been identified for drilling based upon 8 well per section spacing.
- Novus obtained a Contingent Resource Assessment (the "Report") from Sproule Associates Limited effective November 30, 2010 (as previously disclosed in a press release issued by Novus Energy Inc. on December 6, 2010) which identified a "best estimate" of Discovered Petroleum Initially-In-Place ("DPIIP") of 559.5 Million Barrels of light Viking oil on the Company's working interest and option lands. The Report recognized approximately 54 net sections controlled by Novus as containing DPIIP. Novus believes that with its recent acquisitions, and highly successful fourth quarter 2010 drilling program in the area that it has successfully augmented the initial estimates contained in the Report.
- Novus continued its focus on innovation and cost reduction throughout the course of 2010 and devoted substantial attention to fine tuning its completion techniques. Capital costs in the Dodsland area have been reduced to less than $850,000 per well employing Limited Entry fraccing. This technique was utilized with very favorable results on several of the Company's most recent wells, and Novus plans to employ this technique on all of its wells in the Dodsland area throughout 2011. The Limited Entry technique has allowed the Company to reduce capital costs from $975,000 to less than $850,000 per well, while maintaining very encouraging production results. The economic impact of the substantial cost savings materially increases the economic attractiveness of the Viking light oil resource. The Limited Entry fraccing technique is based on simultaneously fraccing several intervals at once through increased pumping rates. Novus will typically frac 12 to 14 intervals over two stages using cross linked water heated to 55 degrees Celsius in a 600 meter lateral section drilled using monobore technology.
- The Company completed the construction during 2010 of two 100% owned oil batteries in the Dodsland area. One battery has fluid handling capacity of 2,500 barrels per day, and the other possesses fluid handling capacity of 3,500 barrels per day and the ability to conserve natural gas production. The Company believes that the investments it has made in this infrastructure will contribute to supporting stable, low operating cost production within the area.
- Novus commenced the drilling of a Bakken oil well in the Roncott area of Saskatchewan, and two Halfway oil wells in the Wembley area of Alberta during the fourth quarter of 2010. It is expected that these wells will be completed during the first quarter of 2011.
Based upon the stable production rates, significant recoverable reserves, and diminishing drilling and completion costs in the Dodsland area the Company has experienced to date, Novus plans on maintaining an aggressive drilling program on its current acreage throughout 2011, and will continue its efforts to further consolidate and expand its position within the area through acquisitions. Novus has been one of the most active operators in the Dodsland area during 2010, and with the success it has enjoyed to date, the Company plans to maintain an active pace continuing to focus on growing light oil production and reserves.
Novus has executed a significant horizontal drilling program on its Viking light oil resource play throughout 2010. Based upon success, and longer term production profiles, the Company will maintain a robust capital program in the area for the ensuing year. With newly expanded credit facilities becoming available, a strong technical team and continual evolution by industry and the Company in lowering costs and improving production in its Viking light oil play, Novus is strategically positioned to exhibit strong growth in 2011. Further details surrounding the Company's Capital Budget and Guidance for the 2011 fiscal year will be released by early February.
MEASUREMENTS
Reported production represents Novus' ownership share of sales before the deduction of royalties. Where amounts are expressed on a barrel of oil equivalent ("boe") basis, natural gas has been converted at a ratio of six thousand cubic feet to one boe. This ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Boe's may be misleading, particularly if used in isolation. References to natural gas liquids ("liquids") include condensate, propane, butane and ethane and one barrel of liquids is considered to be equivalent to one boe.
Novus Energy Inc. is a well positioned, junior oil and gas company with a proven management team committed to aggressive, cost-effective growth of high netback light oil reserves and production. Novus will continue to grow through a targeted acquisition and consolidation strategy coupled with development and exploration drilling. Novus' current financial position and unused lines of credit will allow for the exploitation of its drilling inventory and expansion of the Company's opportunity suite through internally generated prospects and strategic light oil acquisitions.
Novus Shares trade on the TSX Venture Exchange under the symbol NVS. Novus currently has 166.9 million common shares outstanding.
Neither the 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.
This news release will not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. Such securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States, or to a U.S. person, absent registration, or an applicable exemption therefrom.
ADVISORY REGARDING FORWARD LOOKING STATEMENTS
Certain disclosures set forth in this press release constitute forward-looking statements. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believes", "budget", "continue", "could", "estimate", "forecast", "intends", "may", "plan", "predicts", "projects", "should", "will" and other similar expressions. All estimates and statements that describe the Company's future, goals, or objectives, including Management's assessment of future plans and operations, may constitute forward-looking information under securities laws. Forward-looking statements involve known and unknown risks and uncertainties which include, but are not limited to: exploration, development and production risks; assessments of acquisitions; reserve measurements; availability of drilling equipment; access restrictions; permits and licenses; aboriginal claims; title defects; commodity prices; commodity markets; transportation and marketing of crude oil, liquids and natural gas; reliance on operators and key personnel; competition; corporate matters; funding requirements; access to credit and capital markets; market volatility; cost inflation; foreign exchanges rates; general economic and industry conditions; environmental risks; Kyoto protocol; and government regulation and taxation.
Forward-looking statements relate to future events and/or performance and although considered reasonable by Novus at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated in the statements made. Novus does not undertake any obligation to publicly update forward-looking information except as required by applicable securities law.
Thanks for posting; I still have 10,000 shares and will hold NOVUS for good profits.
My biggest concern here are the number of outstanding shares, 166,433,182.
As with all commodity stocks, this can turn with a stock market reversal. I don't want to be caught holding the bag as in 2008, so I took profits at $1 and sold 7,000 shares. As uausual, I sold too early.
I look forward to news in the first quarter; things went rather well in 2010.
Coverage of the stocks seems greater than for most companies of even a higher size.
sumi
Wednesday, December 22, 2010
Novus Energy to acquire assets in Dodsland, Saskatchewan, expands core operations
Calgary-based junior oil and gas company Novus Energy (TSX-V: NVS) said Wednesday it has agreed to acquire certain assets, through two separate transactions, within its greater Dodsland, Saskatchewan core operational area.
The first transaction will see Novus purchase a 75% working interest in 1.75 sections (1,120 acres) of land in the Dodsland area for a price of $135,003, payable through the issuance of 122,730 Novus common shares at a price of $1.10 per share.
Through the second deal, Novus will purchase one section (640 acres) in the Dodsland area for a purchase price of $600,000, payable through the issuance of 500,000 Novus common shares at a price of $1.10 per share and cash consideration of $50,000.
Both transactions are due to close before year-end, subject to regulatory approvals
futr
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NOVUS ENERGY INC.
Novus is a junior oil and gas company that has moved quickly to gain strategic land positions in some of the most prominent resource plays in Western Canada. These plays offer significant upside through development of primarily high netback, light oil reserves. Novus has a large inventory of horizontal locations, and an aggressive drilling program for 2010.
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