NEWS RELEASE - West Natuna Gas Scheme - Well Ahead of Schedule and Below Budget

Novus is pleased to advise that this major, world-class project is nearing completion, and is currently well ahead of schedule and significantly under budget.

As a result Novus is set to benefit from:

- Our share of gas sales (16.5 million cubic feet of gas per day (MMcfd)) of the gas sales contract to Singapore (commencing 15 July 2001);

- Probable early gas sales as from 1Q 2001;

- Possible financial bonuses in the 2000 financial year if key infrastructure is operational this year;

- Probable toll revenue as third parties use the excess capacity in the main pipeline to supply further gas to Malaysia and/or Singapore;

- A boost to liquids production from the Kakap block as shut-in wells are opened up and condensate is recovered from the gas;

- The strong US$-denominated West Natuna gas price, which is tied to oil price.

The Scheme

The scheme involves the supply of 325 MMcfd via a 654 km pipeline system from gas fields in the West Natuna Sea in Indonesian waters to Singapore. Three Production Sharing Contract (PSC) joint ventures will be providing gas:

- Block B operated by Conoco (who are also the project operator);

- Block A operated by Premier;

- Kakap operated by Gulf Indonesia, in which Novus has a 25% interest, has 20% of the West Natuna Transmission System (WNTS).

Pertamina has granted an extension of the Kakap PSC for 23 years to 22 March 2028, to cover the period of gas sales. Construction Phase is well ahead of Schedule Construction commenced with pipe laying on 20 January 2000 and from Novus' point of view can be considered as two sub-projects:

The WNTS consists in the most part of construction of the main pipeline and is jointly funded by the 3 PSCs. The latest cost estimate is US$365.5MM (Novus share US$18MM) compared to a budget of US$371.8MM. The pipeline has been laid and, on the whole, was satisfactorily pressure tested with remedial work on some defects progressing well. Hyperbaric welding repairs were completed on 3 October and testing is to be completed by the end of next week. At this stage it is anticipated that the entire WNTS will be ready for gas early 2001 or possibly late this year.

Kakap specific infrastructure consists of the adaptation of one of the existing oil production platforms to enable simultaneous gas and oil processing and production, plus well completions and pipelines to tie in the four gas fields (KF, KH, KRA and KG). The final cost of this work is currently estimated to be US$46MM (Novus share US$11.5MM) compared to a budget estimate of US$55MM. This work is also progressing well and is expected to be ready to supply gas into the main pipeline by 15 November 2000.

Thus first gas could be supplied to Singapore 1Q 2001 or even late this year through early gas sales - this compares to the scheduled first gas date of 15 April 2001 for commissioning gas and 15 July 2001 for gas deliveries under the long term contract.

Early Gas Sales a Financial Bonus

The Singaporean buyer of the gas has confirmed that customers are prepared to accept deliveries of gas, if available, from late November 2000, with gas produced from Kakap and Block A.

Novus' Chief Financial Officer, Mr Graham Monk, commented:

"Early gas has three financial benefits to Novus. "Firstly, if the Kakap facilities are completed and ready to produce gas before the end of 2000, Novus and the other Kakap partners will be able to use oil produced in the calendar year 2000 to commence recovery of the significant expenditure included on the project. This is effectively bringing forward cash flows from a couple of years hence and delivers significant benefit to Novus and the other contractors.

"Another financial bonus of similar scale will accrue in 2000 if the main WNTS infrastructure is ready for use by end 2000.

"Finally, the early gas sales themselves will provide an unbudgeted financial windfall to the producers of the gas - remembering that first gas for the main gas contract is not until 15 July 2001.

"The price for West Natuna gas is linked to the oil price which is obviously at historically strong levels." Extra Revenues from Tolling As noted above, the main existing gas contract is for 325 MMcfd, however the main WNTS trunk line was deliberately over-engineered to carry at least 600 MMcfd without adding extra compression. This was to allow additional gas sales to Singapore and/or Malaysia from the West Natuna Sea region. We understand that negotiations are well advanced for the supply of additional gas from other West Natuna PSCs into these markets. The Kakap PSC gas reserves are fully committed but the joint venture is set to benefit from tolls for use of the main pipeline from third party contracts.

Boost to Liquids Production

When gas sales commence it will mean that certain oil producing wells, which have previously been shut-in to conserve their gas reserves, will once again flow black oil. In addition the condensate contained within Kakap gas will be recovered (estimated to be 650 barrels of oil per day (bpd)) and added to the oil produced from the block.

Novus' Managing Director, Dr Bob Williams, said: "The Kakap PSC is the most important of the assets we secured as part of our float portfolio. Back in 1995 it was an oil production block but with a substantial volume of unutilised gas. Five years later the Kakap PSC is being rejuvenated as a gas producing asset with two or three decades of life ahead of it. Together with our long-term producing assets in the Western Desert of Egypt and the Australian Cooper Basin, Kakap is becoming one of the strong pillars on which Novus' growth ambitions are based."

The participants in the Kakap PSC are: % NOVUS PETROLEUM 25.00 Gulf Indonesia Resources (Operator) 31.25 Premier (Kakap) 18.75 Singapore Petroleum Company 15.00 Pertamina 10.00

FOR FURTHER INFORMATION please contact: Mike Sandy or Bob Williams, Novus Petroleum 02 9299 4888 http://www.novuspetroleum.com (*)