The Principles of Gas Sales Agreement' provides for sales of up to 80mmscfd until the end of 2007. Current production from the Wunut field has averaged 45mmscfd, although production has intermittently been as high as 55mmscfd during periods of high demand.
To handle the increased volumes, Wunut field production capacity will be expanded through the drilling of additional development wells and some expansion to the existing facilities. The additional cost of the development is anticipated to be under $US4 million net to Novus.
Dr Bob Williams, CEO of Novus Petroleum, said, "Even before this gas sales agreement the performance of Brantas and the growth in demand had been more than satisfactory, with the Wunut field regularly producing up to 50mmscfd which was well in excess of our budgeted volumes.
"This agreement has an immediate positive impact on the value of our interest in Brantas, and provides the impetus to step up our development program of the gas reserves in the PSC," said Williams.
