Oil price and increased production drive Novus to record quarter

Australian oil and gas company, Novus Petroleum Limited, has announced a 62.3% increase in total revenue for the latest September quarter, due mainly to increased production and continuing high world oil prices.

Sydney-based Novus-one of Australia's top 5 oil and gas companies-today reported total revenue of A$52.6 million for the three months ended 30 September 2000 compared with A$32.4 million in the previous corresponding period. It was also Novus' highest revenue for any quarter since the company's formation and public float in 1995.

The record third quarter revenue takes Novus' total revenue to date, for the opening nine months of 2000, to A$144.6 million-already well ahead of the company's previous full-year revenue of A$114.1 million in 1999.

Novus' continuing strong operational performance coincided with a sharp rise to A$51.07 in the average realised price of oil per barrel for the latest September quarter, compared with A$43.90 in the June 2000 quarter and A$30.69 in the previous corresponding period.

The company's Managing Director, Dr Bob Williams, said the continuing strong oil prices had provided Novus with a strong start to the December quarter, with October sales revenue significantly higher than for the same month of 1999.

"Novus is essentially a US-dollar company, with virtually all of its revenue and costs denominated in that currency," said Dr Williams. "Hence we have no significant cash currency exposure, but our financial performance in terms of Australian dollars, in which our share price is of course denominated, is now exceptionally strong. "During the quarter a further $1.7 million of debt was repaid building on the

$24 million that had been repaid in the previous two quarters."

Exploration boost

Dr Williams said the outlook for Novus included participation in a measured increase in its exploration activities compared to the last 1-2 years. "Our focus over recent years has been the development of existing discoveries. With our various development projects now so well advanced, it?Novus Petroleum is time to start looking for new reserves and modestly increasing our exploration expenditure.

"As well as ongoing drilling programmes in Egypt (Novus 10%) and the Australian Cooper Basin (Novus 4.75%), we will be participating in an increasing number of exploration and appraisal wells over the next 12 to 18 months," he said.

"These will probably include wells in Pakistan, Qatar, the Australian NW Shelf, Indonesia, the Philippines and Oman.

"In addition we are looking for new exploration opportunities within our area of focus." Significant development progress Dr Williams said that Novus was enthusiastic about the significant progress being achieved on Indonesian projects in which the company is involved, with the West Natuna Gas Scheme coming on early and gas sales doubling from the Brantas PSC.

"First gas sales under the West Natuna Project were originally scheduled for 15 July 2001," he said.

"However, with the project proceeding well ahead of schedule and significantly under budget, gas sales could potentially start early in 2001 or possibly later this year.

"The laying of approximately 654 km of pipelines connecting the gas fields in the West Natuna Sea to Singapore is complete, with final testing almost finished.

"Within the Kakap block, construction of the modules for processing and gas compression on the KF platform is almost complete, and commissioning of these facilities is expected to be around the middle of November."

Dr Williams said the West Natuna transportation system was now forecast to cost US$365.5m (Novus share US$18m) compared to a budget of US$371.8m.

The Kakap specific work is currently estimated to be US$46m (Novus share US$11.5m) compared to a budget estimate of US$55m. Novus' share of the total expenditure, including project planning, management and support costs, over the life of the project, is currently estimated to be US$37.5m.

Contact: Bob Williams, Managing Director, (02) 9248 0702; Graham Monk, Chief Financial Officer, (02) 9248 0705 (*)