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Novus Energy Inc. announces first quarter 2010 results

^{Published on 2010-05-27 05:05:19 - Market Wire}
 

 - For the three months ended March 31, 2010, Novus' gross revenue increased 228% to $2,986,670 compared to $911,220 recorded in the comparative period in 2009. - Funds flow used in operations was $78,731 in the first quarter of 2010, versus the comparative three month figure of $1,379,121. - Novus' capital program for the first quarter of 2010 was $5,937,958, versus $220,158 spent in the first quarter of 2009. - As at March 31, 2010, the Company had no bank debt and had approximately $23 million cash on hand. At the time of writing this report, the Company has no bank debt and cash on hand of approximately $34 million. 

 - Average daily production for the first quarter increased 132% to 710 boe/d compared to 306 boe/d recorded in the corresponding period in 2009. - Average crude oil and liquids production for the first three months of the year was up 264% to 273 bbls/d versus 75 bbls/d in the comparative quarter. Natural gas production averaged 2,620 mcf/d, an 89% increase from 1,385 mcf/d a year ago. - Current production is approximately 875 boe/d. - During the first quarter of 2010, Novus participated in the drilling of 11 wells (9.5 net). Nine of the wells (8.45 net) targeted oil, and of these, six (6.0 net) were Viking horizontal wells in the Dodsland area. - On January 18, 2010, Novus entered into a 0.5 section farm-in agreement in the Dodsland area. Novus agreed to drill 3 wells on these lands and issued 325,000 of its common shares in conjunction with the transaction. Novus has drilled all the requisite earning wells, and has fulfilled its earning commitment for these lands. - On March 1, 2010, Novus acquired all the issued and outstanding shares of a private company by issuing 18.67 million common shares of Novus. The private company had approximately 214 boe/d of production, positive working capital of approximately $8 million and approximately 16,300 net undeveloped acres (25.5 sections) of land. The core assets acquired are primarily located in Novus' Viking oil resource play in Dodsland, Saskatchewan. - On March 4, 2010, Novus acquired all the issued and outstanding shares of a private company for the consideration of $812,274 and the assumption of $112,276 of debt, subject to a final statement of adjustments. This transaction encompassed two sections of highly prospective lands in the main Dodsland area. - On March 31, 2010, the Company purchased certain interests in the Wembley/Dimsdale area of Alberta for consideration of $950,000. - On April 19, 2010, the Company announced that it had entered into three separate transactions within its core Viking oil resource play at Dodsland, Saskatchewan encompassing an aggregate 4,000 acres (approximately 6.25 sections) for the consideration of $3.85 million. - On April 27, 2010, Novus announced that it had entered into two separate non-binding agreements for the purchase of assets within its core area of Dodsland, Saskatchewan. Pursuant to the agreements, Novus will acquire a total of 5,760 acres (9 sections) for aggregate proceeds of $2.3 million and the issuance of 390,000 common shares of Novus. - On May 3, 2010, the Company entered into a farm-in agreement with a private oil and gas company to earn up to 16.25 net sections of land with petroleum and natural gas rights in the Viking formation in the Dodsland area of Saskatchewan. In addition to the farm-in, the Company also closed the acquisition of 640 acres of land (one section) in the Dodsland area. - On May 18, 2010, the Company successfully closed an offering of 22,730,000 common shares of Novus at a price of $1.10 per common share for aggregate gross proceeds of approximately $25 million. - Novus is also pleased to announce that the Company has entered into a non-binding letter of intent to further supplement its land position in the Dodsland area through the proposed purchase of 640 acres of land (one section) in the Dodsland area for $0.3 million. - Novus now controls over 70 net sections in its Dodsland Viking core area, and has a six year drilling inventory of more than 230 Viking horizontal oil wells. 

 Three months ended Mar 31 2010 2009 ------------------------------------------------------------------------- Financial (000s, except per share amounts) ------------------------------------------------------------------------- Revenue $ 2,987 $ 911 ------------------------------------------------------------------------- Funds flow from (used in) operations (79) (1,379) ------------------------------------------------------------------------- per share - basic and diluted - (0.09) ------------------------------------------------------------------------- Net loss 2,824 9,147 ------------------------------------------------------------------------- per share - basic and diluted 0.02 0.60 ------------------------------------------------------------------------- Capital expenditures, net 5,938 220 ------------------------------------------------------------------------- Working capital 20,483 6,298 ------------------------------------------------------------------------- Weighted average shares outstanding 128,781 15,313 ------------------------------------------------------------------------- Three months ended Mar 31 Operational 2010 2009 ------------------------------------------------------------------------- Production ------------------------------------------------------------------------- Oil & liquids (bbls/d) 273 75 ------------------------------------------------------------------------- Gas (mcf/d) 2,620 1,385 ------------------------------------------------------------------------- Oil equivalent (boe/d) 710 306 ------------------------------------------------------------------------- Average realized prices ------------------------------------------------------------------------- Oil & liquids ($/bbl) 71.65 39.72 ------------------------------------------------------------------------- Gas ($/mcf) 5.20 5.14 ------------------------------------------------------------------------- Oil equivalent ($/boe) 46.76 33.05 -------------------------------------------------------------------------