Novus Energy Inc. meets 2012 exit rate production target and
announces a successful extension to its Greater Dodsland Viking oil
play
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR
DISSEMINATION IN THE U.S./
CALGARY,
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.