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.
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.