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NOVUS ENERGY INC. ANNOUNCES SECOND QUARTER 2010 RESULTS

^{Published on 2010-08-27 05:06:17 - Market Wire}
 

 FINANCIAL HIGHLIGHTS - For the three months ended June 30, 2010, Novus' gross revenue increased 284% to $3,087,877 compared to $804,001 recorded in the comparative period in 2009. For the six months ended June 30, 2010, gross revenue was $6,074,547, compared to $1,715,221 in the comparative period of 2009, representing a 254% increase. - Funds flow used in operations was $686,199 in the second quarter of 2010, versus $475,918 in the comparative three month period of 2009. For the first half of 2010, funds flow used in operations was $764,930, compared to $1,854,949 recorded in the first half of 2009. - Novus' capital program, excluding non-cash and business combination transactions, for the three month period ended June 30, 2010, was $20,155,349, versus $328,639 spent in the comparative period of 2009. Novus' capital program, excluding non-cash and business combination transactions, for the first six months of the year was $26,093,307 compared to $548,797 spent in the first six months of 2009. - As at June 30, 2010, the Company had no bank debt and had positive working capital of approximately $23 million. OPERATIONAL HIGHLIGHTS - Average daily production for the second quarter of 2010 increased 137% to 774 boe/d compared to 327 boe/d recorded in the corresponding period in 2009. Average daily production for the first six months of 2010 was 742 boe/d, up 134% from the 317 boe/d recorded in the corresponding period in 2009. - Average crude oil and liquids production for the second quarter of 2010 was up 318% to 322 bbls/d versus 77 bbls/d in the comparative quarter of 2009. Natural gas production averaged 2,717 mcf/d for the second quarter of 2010, an 81% increase from 1,502 mcf/d in the comparative period of 2009. - Average crude oil and liquids production for the first six months of 2010 was up 292% to 298 bbls/d versus 76 bbls/d in the comparative period of 2009. Natural gas production averaged 2,669 mcf/d, an 85% increase from 1,444 mcf/d in the comparative period of 2009. - Current production is approximately 1,225 boe/d, weighted 60% towards oil and liquids. - During the second quarter of 2010, Novus participated in the drilling of 10 Viking horizontal oil wells (10 net) in the Dodsland area. - On April 19, 2010, the Company announced that it had closed 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 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. - On June 2, 2010, Novus announced that it had closed three separate acquisitions of assets within its core area of Dodsland, Saskatchewan. Pursuant to the agreements, Novus acquired a total of 6,400 acres (10 sections) for aggregate proceeds of $2.6 million and the issuance of 390,000 common shares of Novus. - On July 8, 2010 the Company announced that it closed an acquisition of assets within its core area of Dodsland, Saskatchewan. Pursuant to the acquisition agreement, Novus acquired 4,240 net acres (approximately 6.5 net sections) of prospective land in the Viking oil resource play. The purchase price for the acquired lands was entirely payable through the issuance of 794,199 common shares of Novus at an ascribed price of $0.80 per common share. - Novus now controls 77 net sections in its Dodsland Viking core area, and has a six year drilling inventory of more than 240 Viking horizontal oil wells based upon a drilling density of four wells per section. 

 Three months ended Six months ended June 30 June 30 2010 2009 2010 2009 ------------------------------------------------------------------------- Financial (000s, except per share amounts) ------------------------------------------------------------------------- Revenue 3,088 804 6,075 1,715 ------------------------------------------------------------------------- Funds flow from (used in) operations (686) (476) (765) (1,855) ------------------------------------------------------------------------- per share - basic and diluted - (0.01) (0.01) (0.06) ------------------------------------------------------------------------- Net loss 4,120 1,415 6,944 10,562 ------------------------------------------------------------------------- per share - basic and diluted 0.03 0.03 0.05 0.36 ------------------------------------------------------------------------- Capital expenditures, net 20,155 329 26,093 549 ------------------------------------------------------------------------- Working capital 22,868 5,461 22,868 5,461 ------------------------------------------------------------------------- Weighted average shares outstanding 153,288 42,755 141,102 29,110 ------------------------------------------------------------------------- Three months ended Six months ended June 30 June 30 Operational 2010 2009 2010 2009 ------------------------------------------------------------------------- Production ------------------------------------------------------------------------- Oil & liquids (bbls/d) 322 77 298 76 ------------------------------------------------------------------------- Gas (mcf/d) 2,717 1,502 2,669 1,444 ------------------------------------------------------------------------- Oil equivalent (boe/d) 774 327 742 317 ------------------------------------------------------------------------- Average realized prices ------------------------------------------------------------------------- Oil & liquids ($/bbl) 68.14 44.96 69.74 42.39 ------------------------------------------------------------------------- Gas ($/mcf) 4.42 3.57 4.80 4.32 ------------------------------------------------------------------------- Oil equivalent ($/boe) 43.81 26.96 45.21 29.89 ------------------------------------------------------------------------- 

 Three months ended Six months ended June 30 June 30 2010 2009 2010 2009 ------------------------------------------------------------------------- Land acquisition/ retention $ 4,482,572 $ 63,928 $ 4,504,746 $ 134,073 Geological, geophysical and seismic 242,100 - 364,609 6,787 Drilling and completions 11,859,464 56,049 16,868,869 370,800 Drilling royalty credits (64,913) - (267,237) - Equipping and tie-ins 1,398,500 186,597 1,288,752 10,665 Property acquisitions, net 2,211,039 - 3,135,455 4,407 Furniture and fixtures 26,587 22,065 198,113 22,065 ------------------------------------------------------------------------- Total expenditures $20,155,349 $ 328,639 $26,093,307 $ 548,797 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 - February 9, 2010 - 325,000 common shares with an ascribed value of $286,000 issued pursuant to a farm-in agreement at Dodsland, SK; - March 1, 2010 - 18,666,211 common shares with an ascribed value of $16,986,252 issued pursuant to a business combination; - March 4, 2010 - $702,274 paid pursuant to a business combination; - April 7, 2010 - $1,250,000 paid pursuant to a business combination; and - May 27, 2010 - 390,000 common shares with an ascribed value of $351,000 issued pursuant to a lease acquisition agreement at Dodsland, SK.