/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
U.S./
(TSX Venture Exchange: "NVS")
CALGARY, Aug. 25 /CNW/ - Novus Energy Inc. ("Novus" or the "Company")
announces that it has filed its unaudited interim financial statements and
management's discussion and analysis ("MD&A") as at and for the three and nine
months ended June 30, 2009.
Going forward, the new management team plans on using the Company's
significantly improved financial position, which includes positive working
capital of $5.5 million and a $2.25 million unutilized credit facility, to
capitalize on accretive corporate and asset acquisitions. Novus' corporate
plan is to focus the majority of its efforts in the near term on acquiring
production and reserves at attractive valuations; consolidating areas of
interest; and exploiting lower risk, shallower depth reservoirs. With no bank
debt and positive working capital, the Company believes that it is better
positioned than ever to pursue transactions expected to result in accretive
and profitable growth.
A summary of financial and operational results for the three and nine
month periods ended June 30, 2009, along with the comparative periods, are
outlined in the following table:
Three months Nine months
ended June 30 ended June 30
2009 2008 2009 2008
-------------------------------------------------------------------------
Financial
(000s, except per
share amounts)
-------------------------------------------------------------------------
Revenue $804 $1,433 $2,967 $2,923
-------------------------------------------------------------------------
Funds flow from (used in)
operations (476) 484 (2,137) 432
-------------------------------------------------------------------------
per share - basic and
diluted - 0.01 (0.01) 0.01
-------------------------------------------------------------------------
Net loss 1,415 92 11,923 1,005
-------------------------------------------------------------------------
per share - basic and
diluted - - 0.05 0.02
-------------------------------------------------------------------------
Capital expenditures, net 329 (206) 1,928 1,144
-------------------------------------------------------------------------
Working capital (deficit) 5,461 (3,097) 5,461 (3,097)
-------------------------------------------------------------------------
Weighted average shares
outstanding 427,550 48,138 243,567 48,138
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three months Nine months
ended June 30 ended June 30
Operational 2009 2008 2009 2008
-------------------------------------------------------------------------
Production
-------------------------------------------------------------------------
Oil & liquids (bbls/d) 77 43 81 38
-------------------------------------------------------------------------
Gas (mcf/d) 1,502 1,231 1,415 973
-------------------------------------------------------------------------
Oil equivalent (boe/d) 327 248 317 200
-------------------------------------------------------------------------
Average realized prices
-------------------------------------------------------------------------
Oil & liquids ($/bbl) 44.96 92.02 45.24 81.62
-------------------------------------------------------------------------
Gas ($/mcf) 3.57 9.58 5.09 7.77
-------------------------------------------------------------------------
Oil equivalent ($/boe) 26.96 63.44 34.31 53.26
-------------------------------------------------------------------------
-------------------------------------------------------------------------
The financial results for the nine months ended June 30, 2009 were
impacted to a large degree by a $7 million ceiling test impairment provision;
$575 thousand in severance expenses associated with a management change; and a
$238 thousand write-down of accounts receivable, all of which occurred before
the most recently completed quarter.
The full text of the June 30, 2009 interim financial statements and
associated MD&A can be found on the Company's website at www.novusenergy.ca
and on SEDAR at www.sedar.com.
NON-GAAP FINANCIAL MEASUREMENTS
Included in this press release are references to funds flow from
operations, a financial measure commonly used in the oil and gas industry.
This measure has no standardized meaning, is not defined by Canadian generally
accepted accounting measures ("GAAP"), and accordingly is referred to as a
non-GAAP measure. This supplemental measure is used by management to assess
operating results between periods and between peer companies as it provides an
indication of the results generated by the Company's principal business
activities before the consideration of how these activities are financed or
how the results are taxed.
Novus determines funds flow from operations as cash provided by operating
activities prior to changes in non-cash working capital items and asset
retirement expenditures. Funds flow from operations has been presented for
information purposes only and should not be considered an alternative to, or
more meaningful than, cash flow from operating activities as determined in
accordance with GAAP. The Company considers funds flow from operations to be a
key measure as it demonstrates the Company's ability to generate the cash
necessary to repay debt and to fund future growth through capital investment.
The determination of Novus' funds flow from operations may not be comparable
to similarly titled measures reported by other companies.
OTHER MEASUREMENTS
Reported production represents Novus' ownership share of sales before the
deduction of royalties. Where amounts are expressed on a barrel of equivalent
("boe") basis, natural gas has been converted at a ratio of six thousand cubic
feet to one boe. This ratio is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead. Boe's may be misleading, particularly if used in
isolation. References to natural gas liquids ("liquids") include condensate,
propane, butane and ethane and one barrel of liquids is considered to be
equivalent to one boe.
ADVISORY REGARDING FORWARD LOOKING STATEMENTS
Certain disclosures set forth in this press release constitute
forward-looking statements. Any statements contained herein that are not
statements of historical facts may be deemed to be forward-looking statements.
Forward-looking statements are often, but not always, identified by the use of
words such as "anticipate", "believes", "budget", "continue", "could",
"estimate", "forecast", "intends", "may", "plan", "predicts", "projects",
should", "will" and other similar expressions. All estimates and statements
that describe the Company's future, goals, or objectives, including
Management's assessment of future plans and operations, may constitute
forward-looking information under securities laws. Forward-looking statements
involve known and unknown risks and uncertainties which include, but are not
limited to: exploration, development and production risks; assessments of
acquisitions; reserve measurements; availability of drilling equipment; access
restrictions; permits and licenses; aboriginal claims; title defects;
commodity prices; commodity markets, transportation and marketing of crude
oil, liquids and natural gas; reliance on operators and key personnel;
competition; corporate matters; funding requirements; access to credit and
capital markets; market volatility; cost inflation; foreign exchanges rates;
general economic and industry conditions; environmental risks; Kyoto protocol;
and government regulation and taxation.
Forward-looking statements relate to future events and/or performance and
although considered reasonable by Novus at the time of preparation, may prove
to be incorrect and actual results may differ materially from those
anticipated in the statements made. Novus does not undertake any obligation to
publicly update forward-looking information except as required by applicable
securities law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
