The Australian-based producer has acquired a 100% working interest (WI) in East Cameron tracts 317 and 318, offshore Louisiana; a 79% WI in Main Pass tracts 64 and 65, offshore Louisiana and an additional 48% WI in the Sorrento Dome, onshore Louisiana to bring its WI to 63%.
The East Cameron interest was purchased in two transactions for a combined purchase price of approximately $US25 million. Current gross production from the properties is in excess of 11mmscfd and 600bopd and combined proved reserves are approximately 33.4bcfe of which 88% are natural gas.
"The crisis for natural gas supply in the United States is now widely recognised, and now is the time to be building a reserves base," said Dr Bob Williams, CEO of Novus Petroleum.
Novus has also increased its stake in the Sorrento Dome area through the acquisition of Burlington's WI for $0.8 million. The company will now operate all three assets.
On completion of these transactions, and with the NUL13-1 well now onstream, Novus' US production net to its working interests will be over 30mmcfe per day.
"Despite the current price for natural gas it is possible to buy reserves at reasonable cost. The equivalent price we have just paid is a little over 70 cents per million btu of proven reserves.
"These are attractive deals and typical of others that we are pursuing. The forward production profile of the assets are predictable, and at today's gas prices we are able to hedge the production of our growing portfolio of US gas to lock in an immediate return on our investment," said Williams.
