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NOVUS ENERGY INC. ANNOUNCES FIRST QUARTER 2011 RESULTS AND A SIGNIFICANT ACQUISITION OF LAND IN ITS CORE AREA OF SOUTHWEST SASK

^{Published on 2011-06-15 05:05:51 - Market Wire}
 

 - For the three months ended March 31, 2011, Novus' gross revenue increased 197% to $8.87 million compared to $2.99 million recorded in the comparative period in 2010. - Funds flow from operations was $3.21 million in the first quarter of 2011, versus an outflow of $85 thousand for the comparative three month period of 2010. - Novus' capital program, excluding non-cash and business combination transactions, for the three month period ended March 31, 2011, was $12.25 million, versus $5.93 million in the comparative period of 2010. - At March 31, 2011, the Company had bank debt of $1.9 million and currently has credit facilities in place of $40 million. - Novus continues to maintain significant tax pool coverage, with an estimated balance of $205 million at March 31, 2011. - The Company currently has outstanding 22.69 million in-the-money warrants expiring March 31, 2012, which, upon exercise, would result in proceeds of $17.02 million being realized by the Company. 

 - Average daily production for the first quarter of 2011 increased 117% to 1,544 boe/d from the 710 boe/d recorded in the corresponding period in 2010. - Average crude oil and liquids production for the first three months of the year was up 280% to 1,037 bbls/d versus 273 bbls/d in the comparative quarter. Natural gas production averaged 3,040 mcf/d, a 16% increase from 2,620 mcf/d a year ago. - The Company expects to show significant production growth in the second half of the year and expects to meet its exit rate guidance of 3,000 boe/d early in the fourth quarter of the year. Approximately 83% of the Company's exit production volumes are forecast to be comprised of oil and liquids. - On May 11, 2011, Novus recommenced drilling operations in Dodsland, with a second rig beginning drilling operations on May 22, 2011. - A total of nine Viking wells have been drilled since break up, and a further nine wells are anticipated to be drilled by June 30, 2011. Of the 21 Viking wells the Company expects to drill by the end of the second quarter, 16 are anticipated to be completed and on production by such date. - The Company has managed to maintain low drilling and completion costs which are expected to be approximately $850 thousand per well. Long term drilling and frac contracts have been entered into to provide certainty in the Company's ability to maintain its favorable cost structure. - Novus has 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. 

 Three months ended March 31 2011 2010 % change ------------------------------------------------------------------------- Financial (000s, except per share amounts) ------------------------------------------------------------------------- Revenue $ 8,871 $ 2,987 197 ------------------------------------------------------------------------- Funds flow from (used in) operations 3,208 (85) n/a ------------------------------------------------------------------------- per share - basic and diluted 0.02 - n/a ------------------------------------------------------------------------- Net loss 1,332 1,837 (27) ------------------------------------------------------------------------- per share - basic and diluted 0.01 0.01 - ------------------------------------------------------------------------- Capital expenditures, net 12,252 5,932 107 ------------------------------------------------------------------------- Working capital (deficiency) (8,658) 20,498 (142) ------------------------------------------------------------------------- Weighted average shares outstanding 168,248 128,781 31 ------------------------------------------------------------------------- Three months ended March 31 Operational 2011 2010 % change ------------------------------------------------------------------------- Production ------------------------------------------------------------------------- Oil & liquids (bbls/d) 1,037 273 280 ------------------------------------------------------------------------- Gas (mcf/d) 3,040 2,620 16 ------------------------------------------------------------------------- Oil equivalent (boe/d) 1,544 710 117 ------------------------------------------------------------------------- Average realized prices ------------------------------------------------------------------------- Oil & liquids ($/bbl) 83.44 71.65 16 ------------------------------------------------------------------------- Gas ($/mcf) 3.94 5.20 (24) ------------------------------------------------------------------------- Oil equivalent ($/boe) 63.83 46.76 37 -------------------------------------------------------------------------