news outCALGARY, 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.