Novus Restructures Padre Island Project

Novus Petroleum has revealed plans to simplify its interest in its Padre Island Project off the coast of Texas. Under the deal the group will exchange its interests in certain Padre Island "shallow" (less than 11,000 feet) prospects for an increased interest in the region's "deep" (11,000 feet to 15,000 feet) prospects, as well as paying $US3.4 million ($A5.3 million).

The end result will be the group owning and operating a 70% interest in the deep gas plays which typically have a reserve potential of more than 100 billion cubic feet of gas.

Novus will retain its working interest in the shallow prospects, including the producing fields, while maintaining its joint venture interests in the ultra-deep play (more than 15,000 feet) in which energy giant BP recently farmed into.

The Company is planning to drill six wells in the next 18 months, with two possible by year end. To help meet the cost of the $US6 million-plus wells (100 percent basis) the group is planning to introduce farm-in partners to share the cost.