Novus sells SE Sumatra interest for $20 million

Novus sells SE Sumatra interest for $20 million

SYDNEY (Dow Jones): Novus Petroleum Ltd., an Australian oil
and gas company, yesterday said it has sold its 3.72 percent
interest in the South East Sumatra Production Sharing Contract in
Indonesia to Pittencrieff Resources PLC of the UK for US$20
million.

The sale is subject to the approval of shareholders of
Pittencrieff, which will be sought at a meeting in July. Subject
to such approval, the sale is expected to be completed by the end
of July.

Novus said the sale price was derived from the residual book
value of the property as at June 30, of US$12.6 million, as well
as the company's proven and probable reserves comprising 16.7
million barrels of oil and 24.8 billion cubic feet of gas.

"It is intended that the proceeds of the sale shall be used to
retire some of the debt recently drawn to acquire the portfolio
of properties in the Khalda area of Egypt," Novus said in a
statement. Earlier this month, Novus bought five Egyptian oil and
gas assets from South Korea's Samsung Corp.for US$40 million.

"The sale of the South East Sumatra stake isn't in response to
any concern over the performance of the asset...(but) is driven
by our desire to inject more growth assets, such as the newly
acquired Egyptian properties, into the Novus portfolio," said Bob
Williams, Novus' managing director.

"Likewise, the sale doesn't reflect concern about our assets
in Indonesia. We are committed to our Indonesian business and are
confident that opportunities exist in the country to add further
value, especially as its economy recovers," Williams added. "Our
intention is to position the company with an adjusted portfolio
more suited to the next five years than the one assembled in 1994
to launch the company."