Novus? E. Java gas sales up in Q2, eyeing new gas contract.

Australian listed oil and gas company Novus Petroleum Limited said Thursday that net average sales of gas from its Wunut gas field in Brantas production sharing contract (PSC) area in East Java during the second quarter of this year were 7 million standard cubic feet per day (mmcfd), up from 3.7 mmcfd the previous quarter.

Novus said that gross production during May peaked at 24 mmcfd and averaged 19 mmcfd as Brantas covered shortfall from other East Java gas producers.

Wunut gas field said the company is currently producing at an average of 9.5 mmcfd.

According to the company?s second quarter results report, Novus is currently negotiating for long-term gas contract and modifications to the Wunut facilities are presently underway to enhance production capacity of the Field.

The company expected the work to be completed in fourth quarter of this year.

According to Novus, final preparations are underway to commence a three well exploration drilling programme in the onshore portion of the PSC.

The company said that the first well will spud early in August.

The prospects to be drilled are targeting additional low risk gas reserves in East Java, in close proximity to Novus' existing infrastructure around the Wunut Gas Field.

Novus holds 50 percent working interest in Brantas PSC, while local oil and gas companies Lapindo Brantas Inc.holds the remaining 50 percent.(alex)