Novus Energy Inc. 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.

Source: Digital Journal

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