Novus Energy Inc NOVUF

Year End Results

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Looks very good. GLTA

Novus Energy Inc. Announces Year End 2011 Financial and Operational Results and Achieves Record Production and Funds Flow

 

Thursday, April 12, 2012

 

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S./

CALGARY, April 12, 2012/CNW/ - Novus Energy Inc. ("Novus" or the "Company") is pleased to announce that it has filed its audited financial statements and management's discussion and analysis ("MD&A") as at and for the fiscal year ended {C}December 31{C}, 2011.  These may be accessed through the SEDAR website {C}www.sedar.com{C}  and at the Company's website www.novusenergy.ca.

Novus had a very active and highly successful year in 2011.  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 and healthy recycle ratio validate the growth strategy of assembling a predictable, low risk, multi-year drilling inventory within a concentrated core area. In 2012 the Company will continue to demonstrate our ability to generate per share growth in production, funds flow, reserves and net asset value.

Financial Highlights

• Production revenue increased 163% to $53.1 millionfrom $20.2 millionin 2010.
• Fourth quarter production revenue increased 166% to $21.2 millionfrom $8.0 millionin 2010.
• Funds flow from operations increased 607% to $26.1 millionfrom $3.7 milliona year ago.
• Fourth quarter funds flow from operations increased 392% to $12.0 millionfrom $2.4 milliona year ago.
• Funds flow per share increased 650% to
  .15from
  .02per share in 2010.  Funds flow per share for the fourth quarter of 2011 was
  .07, up 600% from
  .01recorded in the comparative quarter of 2010.
• Novus achieved operating netbacks of $47.17/boe up 101% from $23.52/boe recorded in 2010.  Operating netbacks in the fourth quarter of 2011 were a record $55.34/boe.
• The Company's Viking production achieved impressive operating netbacks of $68.16/boe for the fourth quarter of 2011.  For the twelve month period of 2011, operating netbacks in the Viking were $63.02/boe.
• The Company ended 2011 with net debt of $48.3 millionagainst $60.0 millionof credit facilities.  Current debt is approximately $40 million.

Operational Highlights

• Production increased 77% to 1,971 boe/d, weighted 76% towards oil and liquids, from 1,115 boe/d in 2010.
• Fourth quarter production increased 81% to 2,845 boe/d, weighted 83% towards oil and liquids, in 2011 from 1,571 boe/d in the corresponding quarter of 2010.
• Production per share increased 61% in 2011 compared to the period ending December 31, 2010.  Production per share increased 78% in the fourth quarter of 2011, compared with the corresponding quarter 2010.
• The Company drilled 59 wells (57.9 net) in 2011, with 52 wells (51.8 net) achieving a 100% success rate targeting the Viking play in Dodsland, Saskatchewan.
• Proved plus probable reserves at December 31, 2011increased by 58% to 14.56 million boe, up from 9.24 million boe on December 31, 2010.
• The net present value of proved plus probable reserves, before income tax and discounted at 10%, increased 102% to $331.3 millionup from $164.2 millionat December 31, 2010, representing an increase of $167.1 million
• The Company's fully diluted net asset value per share increased dramatically to $1.64.
• Novus' operating costs have continued to materially decrease from $18.20/boe in the first quarter of 2011 to $12.88/boe in the fourth quarter of 2011.
• The Company's fourth quarter 2011 operating costs for its Viking production was $9.02/boe.
• Novus' land holdings in Western Canadaincreased 16% to 129,953 net undeveloped acres (203 sections) at the end of 2011, from 111,656 acres (174 sections) at the end of 2011.
• Results from the Company's Flaxcombe lands in the Viking play are continuing to exceed expectations. Novus has identified two distinct Viking cycles which have been mapped over 10 contiguous sections. This 10 section sub area has the potential for drilling up to 320 wells.
• Novus completed construction of a major pipeline and battery facilities in its Flaxcombe/Whiteside area.