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CALGARY, Nov. 29, 2013 /CNW/ – Novus Energy Inc. (“Novus” or the “Company“) (TSXV: NVS) announces that it 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 September 30, 2013. These may be accessed through the SEDAR website www.sedar.com under the Company’s profile and at the Company’s website www.novusenergy.ca.
FINANCIAL HIGHLIGHTS
- Production revenue for the three months ended September 30, 2013 increased 68% to $32.43 million from $19.35 million recorded in the comparative period of 2012. For the nine months ended September 30, 2013, production revenue increased 53% to $83.37 million from $54.63 million recorded in the comparative period of 2012.
- Funds flow from operations for the three months ended September 30, 2013 increased 79% to $19.40 million from $10.84 million recorded in the comparative period of 2012. For the nine months ended September 30, 2013 funds flow from operations increased 61% to $48.40 million from $30.08 million recorded in the comparative period of 2012.
- Net income for the three months ended September 30, 2013 increased 332% to $7.43 million from $1.72 million recorded in the comparative period of 2012. For the nine months ended September 30, 2013 net income increased 188% to $16.30 million from $5.65 million recorded in the comparative period of 2012.
- Net capital expenditures for the three months ended September 30, 2013 were $25.76 million versus $22.95 million recorded in the comparative period of 2012. For the nine months ended September 30, 2013, net capital expenditures were $50.45 million versus $58.16 million recorded in the comparative period of 2012.
- As at September 30, 2013, the Company had net debt (excluding the fair value of commodity contracts) of $81.28 million.
- As at September 30, 2013, the Company’s net debt to annualized third quarter 2013 funds flow ratio was 1.0x.
- Subsequent to quarter end, the Company’s revolving operating demand loan facility was expanded from $95 million to $105 million.
- As at September 30, 2013, the Company had estimated tax pools of $270.81 million.
- Operating netbacks for the three months ended September 30, 2013 increased 35% to $61.90/boe from $45.87/boe recorded in the comparative period of 2012. For the nine months ended September 30, 2013, operating netbacks increased 19% to $55.17/boe from $46.40/boe recorded in the comparative period of 2012.
A summary of financial results for the three and nine month periods ended September 30, 2013, along with the comparative periods, are outlined in the following table:
| Three months ended Sep 30 | Nine months ended Sep 30 | ||||||||||||
| 2013 | 2012 | % Change | 2013 | 2012 | % Change | ||||||||
| Financial ($000s, except per share amounts) |
|||||||||||||
| Revenue | 32,433 | 19,351 | 68 | 83,367 | 54,630 | 53 | |||||||
| Funds flow from operations | 19,399 | 10,839 | 79 | 48,397 | 30,082 | 61 | |||||||
| per share – basic | 0.10 | 0.06 | 67 | 0.26 | 0.16 | 63 | |||||||
| per share – diluted | 0.10 | 0.06 | 67 | 0.25 | 0.16 | 56 | |||||||
| Net income | 7,431 | 1,720 | 332 | 16,304 | 5,654 | 188 | |||||||
| per share – basic | 0.04 | 0.01 | 300 | 0.09 | 0.03 | 200 | |||||||
| per share – diluted | 0.04 | 0.01 | 300 | 0.08 | 0.03 | 167 | |||||||
| Capital expenditures, net | 25,757 | 22,950 | 12 | 50,446 | 58,160 | (13) | |||||||
| Net debt (excluding the fair value of financial instruments) |
81,281 | 61,195 | 33 | 81,281 | 61,195 | 33 | |||||||
| Weighted average shares outstanding | |||||||||||||
| basic | 189,375 | 189,800 | – | 189,375 | 185,986 | 2 | |||||||
| diluted | 194,429 | 191,464 | 2 | 194,096 | 189,843 | 2 | |||||||
OPERATIONAL HIGHLIGHTS
- Average daily production for the three months ended September 30, 2013 increased 28% to 4,051 boe/d (83% oil & liquids) from 3,154 boe/d (77% oil & liquids) recorded in the comparative period of 2012. For the nine months ended September 30, 2013 average daily production increased 32% to 3,863 boe/d (82% oil & liquids) from 2,929 boe/d (77% oil & liquids) recorded in the comparative period of 2012.
- Average daily oil and liquids production for the three months ended September 30, 2013 increased 38% to 3,372 bbls/d from 2,439 bbls/d recorded in the comparative period of 2012. For the nine months ended September 30, 2013 average daily oil and liquids production increased 40% to 3,163 bbls/d from 2,266 bbls/d recorded in the comparative period of 2012.
- The Company’s operating costs for the three months ended September 30, 2013 increased 7% to $10.66/boe from $9.95/boe recorded in the comparative period of 2012. For the nine months ended September 30, 2013, the Company’s operating costs decreased 1% to $10.38/boe from $10.49/boe recorded in the comparative period of 2012.
- During the third quarter of 2013 Novus drilled 31 wells (31.0 net), all of which were Viking horizontal oil wells in the greater Dodsland area. Thirty-three wells (33.0 net) were completed. For the first nine months of 2013 Novus drilled 56 wells (56.0 net), all of which were Viking horizontal oil wells in the greater Dodsland area. Fifty-three wells (53.0 net) were completed.
A summary of operational results for the three and nine month periods ended September 30, 2013, along with the comparative periods, are outlined in the following table:
| Three months ended Sep 30 | Nine months ended Sep 30 | |||||||||||
| Operational | 2013 | 2012 | % Change | 2013 | 2012 | % Change | ||||||
| Production | ||||||||||||
| Oil & liquids (bbls/d) | 3,372 | 2,439 | 38 | 3,163 | 2,266 | 40 | ||||||
| Gas (mcf/d) | 4,075 | 4,287 | (5) | 4,198 | 3,980 | 5 | ||||||
| Oil equivalent (boe/d) | 4,051 | 3,154 | 28 | 3,863 | 2,929 | 32 | ||||||
| Sales price per unit | ||||||||||||
| Oil & liquids ($/bbl) | 101.17 | 81.75 | 24 | 92.00 | 83.89 | 10 | ||||||
| Gas ($/mcf) | 2.79 | 2.55 | 9 | 3.42 | 2.34 | 46 | ||||||
| Oil equivalent ($/boe) | 87.01 | 66.70 | 30 | 79.06 | 68.06 | 16 | ||||||
Novus’ condensed interim financial statements as at and for the three and nine months ended September 30, 2013 and associated MD&A can be found on the Company’s website at www.novusenergy.ca and under the Company’s profile on SEDAR at www.sedar.com.
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 thousand per well.
VALUE OPTIMIZATION PROCESS
On September 3, 2013, Novus entered into an arrangement agreement (the “Arrangement Agreement”) with Yanchang Petroleum International Limited (“Yanchang Petroleum International”) and Yanchang International (Canada) Limited (“Yanchang Canada”), 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”).
The Arrangement was approved by the shareholders of Novus at the annual and special meeting held on November 15, 2013. The Arrangement also received approval from the Court ofQueen’s Bench