Novus confident of assets as RI reserves increase

Novus confident of assets as RI reserves increase

SYDNEY, Australia (AP): Emerging oil and gas producer Novus Petroleum may be set to commercialize its Singa-1 well in Indonesia after the company expressed confidence yesterday in its potential.

Novus chairman John FitzGerald said early indications from Singa-1, in which Novus is involved with Energy Equity Corp., were consistent with potential commercial production.

"At this stage we have little idea of its size but it is located in an area surrounded by existing fields and infrastructure," he told shareholders at the annual general meeting.

Singa-1 results "are consistent with a significant and potentially commercial discovery by that well," he said.

Simultaneously, Miriwah-1 in Pakistan is being tested and "our very preliminary information gives us cause for optimism."

FitzGerald said that in both cases, more evaluation and testing was required.

Novus's shares and those in its Singa-1 well partner Energy Equity Corp. moved strongly this week after EEC announced it had experienced a significant drilling break and gas inflow.

The company had exploration successes in Indonesia as well as the imminent commercialization of the Kakap offshore well which will for the first time be booked as reserves, he said.

This means the well's reserves would be included in Novus' reserve base.

"Altogether these three components are likely to contribute approximately 30 million barrels of oil equivalent to Novus' booked reserves, which is equal to over three years of production at current rates, making a total of six years production renewal since float," FitzGerald said.