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.