NOVUS ENERGY INC. ANNOUNCES STRATEGIC FARM-IN AGREEMENT IN ITS CORE AREA OF DODSLAND SASKATCHEWAN AND OPERATIONAL UPDATE
October 06 2010 - 8:00AM
PR Newswire (Canada)
CALGARY, Oct. 6 /CNW/ -- /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR DISSEMINATION IN THE U.S./ CALGARY, Oct. 6 /CNW/ -
Novus Energy Inc. ("Novus" or the "Company") (TSXV: NVS) is pleased
to announce that it has entered into a farm-in agreement with a
private oil and gas company to earn certain key lands within its
Dodsland, Saskatchewan core operational area. The agreement will
provide Novus with the right to farm-in on an estimated 5.25 net
sections of land with petroleum and natural gas rights in the
Viking formation. With this agreement, Novus now controls
approximately 82.25 net sections of land in the Dodsland area.
Under the terms of the farm-in agreement, Novus will pay 100% of
the farmor's drilling costs to earn 70% of the farmor's working
interest. Novus has agreed to drill two development wells prior to
May 14, 2011, and the agreement provides Novus with a rolling
option to earn the remainder of the farm-in lands. The Company is
also pleased to announce that it has commenced drilling operations
of its fall program in the Dodsland Saskatchewan area. Novus plans
on drilling a minimum of 11 net horizontal Viking oil wells in the
area during the fourth quarter of 2010. Subject to favorable
weather conditions, the Company may increase the number of wells to
be drilled. The Company has also recently participated in the
drilling and fracture stimulation of seven gross (3.5 net)
non-operated, horizontal, Viking oil wells in the Dodsland area and
expects its partner to have these wells tied-in and on production
early in the fourth quarter. In the Rocanville area of
Saskatchewan, Novus has recently completed the drilling and casing
of a prospective 35% working interest Bakken oil well. Pending
completion operations, the Company may elect to pursue the drilling
of a follow up location. Based upon the production rates,
recoverable reserves, and drilling and completion costs in the
Dodsland area the Company has experienced to date, Novus plans on
maintaining an aggressive drilling program on its current acreage,
and will continue its efforts to further consolidate and expand its
position within the area through acquisitions. Novus has been one
of the most active operators in the Dodsland area, and with the
success it has enjoyed to date, the Company plans to continually
expand its already significant position in the area. Novus Energy
Inc. is a well positioned, junior oil and gas company with a proven
management team committed to aggressive, cost-effective growth of
high netback light oil reserves and production. Novus will continue
to grow through a targeted acquisition and consolidation strategy
coupled with development and exploration drilling. Novus' current
financial position of having $16 million of positive working
capital and unused lines of credit will allow for the exploitation
of its drilling inventory and expansion of the Company's
opportunity suite through internally generated prospects and
strategic light oil acquisitions. Novus Shares trade on the TSX
Venture Exchange under the symbol NVS. Novus currently has 166.4
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. 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: 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 exchanges
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. NOVUS ENERGY INC., Hugh G. Ross, President and CEO,
(403) 218-8895; Ketan Panchmatia, Chief Financial Officer, (403)
218-8876; Julian Din, VP Business Development, (403) 218-8896
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