08:28:39 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Novus Energy Inc
Symbol NVS
Shares Issued 189,375,042
Close 2013-11-29 C$ 1.16
Market Cap C$ 219,675,049
Recent Sedar Documents

Novus Energy earns $7.43-million in Q3 2013

2013-11-29 16:24 ET - News Release

Mr. Hugh Ross reports

NOVUS ENERGY INC. ANNOUNCES THIRD QUARTER 2013 RESULTS

Novus Energy Inc. has filed its unaudited condensed interim financial statements, and management's discussion and analysis (MD&A) as at and for the three and nine months ended Sept. 30, 2013. These may be accessed through the SEDAR website under the company's profile and at the company's website.

Financial highlights

Production revenue for the three months ended Sept. 30, 2013, increased 68 per cent to $32.43-million from $19.35 million recorded in the comparative period of 2012. For the nine months ended Sept. 30, 2013, production revenue increased 53 per cent to $83.37-million from $54.63-million recorded in the comparative period of 2012.

Funds flow from operations for the three months ended Sept. 30, 2013, increased 79 per cent to $19.40-million from $10.84-million recorded in the comparative period of 2012. For the nine months ended Sept. 30, 2013, funds flow from operations increased 61 per cent to $48.40-million from $30.08-million recorded in the comparative period of 2012.

Net income for the three months ended Sept. 30, 2013, increased 332 per cent to $7.43-million from $1.72-million recorded in the comparative period of 2012. For the nine months ended Sept. 30, 2013, net income increased 188 per cent to $16.30-million from $5.65-million recorded in the comparative period of 2012.

Net capital expenditures for the three months ended Sept. 30, 2013, were $25.76-million versus $22.95-million recorded in the comparative period of 2012. For the nine months ended Sept. 30, 2013, net capital expenditures were $50.45-million versus $58.16-million recorded in the comparative period of 2012.

As at Sept. 30, 2013, the company had net debt (excluding the fair value of commodity contracts) of $81.28-million.

As at Sept. 30, 2013, the company's net-debt-to-annualized-third-quarter-2013-funds-flow ratio was 1.0 time.

Subsequent to quarter-end, the company's revolving operating demand loan facility was expanded from $95-million to $105-million.

As at Sept. 30, 2013, the company had estimated tax pools of $270.81-million.

Operating netbacks for the three months ended Sept. 30, 2013, increased 35 per cent to $61.90 per barrel of oil equivalent from $45.87 per barrel of oil equivalent recorded in the comparative period of 2012. For the nine months ended Sept. 30, 2013, operating netbacks increased 19 per cent to $55.17 per boe from $46.40 per boe recorded in the comparative period of 2012.

A summary of financial results for the three- and nine-month periods ended Sept. 30, 2013, along with the comparative periods, are outlined in the associated table.

                                       FINANCIAL HIGHLIGHTS
                      (in thousands of dollars except per-share amounts)

                                                           Three months ended  Nine months ended
                                                                     Sept. 30,          Sept. 30,
                                                                 2013    2012       2013    2012
     
Revenue                                                       $32,433 $19,351    $83,367 $54,630
Funds flow from operations                                     19,399  10,839     48,397  30,082
Per share -- basic                                               0.10    0.06       0.26    0.16
Per share -- diluted                                             0.10    0.06       0.25    0.16
Net income                                                      7,431   1,720     16,304   5,654
Per share -- basic                                               0.04    0.01       0.09    0.03
Per share -- diluted                                             0.04    0.01       0.08    0.03
Capital expenditures, net                                      25,757  22,950     50,446  58,160
Net debt (excluding the fair value
of financial instruments)                                      81,281  61,195     81,281  61,195

Operational highlights

Average daily production for the three months ended Sept. 30, 2013, increased 28 per cent to 4,051 barrels of oil equivalent per day (83 per cent oil and liquids) from 3,154 boepd (77 per cent oil and liquids) recorded in the comparative period of 2012. For the nine months ended Sept. 30, 2013, average daily production increased 32 per cent to 3,863 boepd (82 per cent oil and liquids) from 2,929 boepd (77 per cent oil and liquids) recorded in the comparative period of 2012. Average daily oil and liquids production for the three months ended Sept. 30, 2013, increased 38 per cent to 3,372 barrels per day from 2,439 bpd recorded in the comparative period of 2012. For the nine months ended Sept. 30, 2013, average daily oil and liquids production increased 40 per cent to 3,163 bpd from 2,266 bpd recorded in the comparative period of 2012.

The company's operating costs for the three months ended Sept. 30, 2013, increased 7 per cent to $10.66 per boe from $9.95 per boe recorded in the comparative period of 2012. For the nine months ended Sept. 30, 2013, the company's operating costs decreased 1 per cent to $10.38 per boe from $10.49 per boe recorded in the comparative period of 2012. During the third quarter of 2013, Novus drilled 31 wells (31.0 net), all of which were Viking horizontal oil wells in the Greater Dodsland Area. Thirty-three wells (33.0 net) were completed. For the first nine months of 2013, Novus drilled 56 wells (56.0 net), all of which were Viking horizontal oil wells in the Greater Dodsland Area. Fifty-three wells (53.0 net) were completed. A summary of operational results for the three- and nine-month periods ended Sept. 30, 2013, along with the comparative periods, are outlined in the associated table.

                         OPERATIONAL HIGHLIGHTS

                        Three months ended  Nine months ended
                                  Sept. 30,          Sept. 30,
                              2013    2012       2013    2012

Production
Oil and liquids (bbl/d)      3,372   2,439      3,163   2,266
Gas (mcf/d)                  4,075   4,287      4,198   3,980
Oil equivalent (boe/d)       4,051   3,154      3,863   2,929
Sales price per unit
Oil and liquids ($/bbl)    $101.17  $81.75     $92.00  $83.89
Gas ($/mcf)                   2.79    2.55       3.42    2.34
Oil equivalent ($/boe)       87.01   66.70      79.06   68.06

Novus's condensed interim financial statements as at and for the three and nine months ended Sept. 30, 2013, and associated MD&A can be found on the company's website and under the company's profile on SEDAR.

Operational update

During the third quarter of 2013, Novus drilled 31 wells (31.0 net), all of which were Viking horizontal oil wells in the Greater Dodsland Area. Thirty-three wells (33.0 net) were completed. For the first nine months of 2013, Novus drilled a total of 56 wells (56.0 net), all of which were Viking horizontal oil wells in the Greater Dodsland Area. Fifty-three wells (53.0 net) were completed. A total of 21 more wells are planned to be drilled, and 19 wells are scheduled to be completed during the fourth quarter.

The company continues to reduce its well costs. Third-quarter 2013 on-stream costs were less than $810,000 per well.

Value optimization process

On Sept. 3, 2013, Novus entered into an arrangement agreement with Yanchang Petroleum International Ltd. and Yanchang International (Canada) Ltd., pursuant to which Yanchang Petroleum International agreed to purchase, through Yanchang Canada, all of the issued and outstanding common shares of Novus at a price of $1.18 per common share pursuant to a plan of arrangement under the Business Corporations Act (Alberta).

The arrangement was approved by the shareholders of Novus at the annual and special meeting held on Nov. 15, 2013. The arrangement also received approval from the Court of Queen's Bench of Alberta on the same date. All requisite approvals from governmental entities in the People's Republic of China have also been obtained.

Completion of the arrangement remains subject to certain approvals set forth in the arrangement agreement, including approval of a simple majority of votes cast by shareholders of Yanchang Petroleum International at a meeting that will be called to, among other things, consider the arrangement, which is expected to be held in December, 2013. In addition, the arrangement is conditional upon Yanchang Petroleum International finalizing financing arrangements.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.