Because of the new agreement, Wunut field delivery will be expanded through the drilling of additional development wells and some expansion of existing facilities. The additional cost of the development is expected to be less than $US4 million to Novus.

The turn around is due to an increased focus on gas exploration and production since 2001 which means gas now accounts for more than 70% of total production volumes.

The production increase was the highlight of a busy quarter for the company which included Novus' first operated well in the US, NUL 13-1 at Sorrento Dome, resulting in a gas discovery towards the upper end of pre-drill expectations of 7 to 12bcf. The well is currently being completed and should be producing within three months.

During the period Novus also increased its interest in the prospective deep section of Padre Island, USA, to 70%, along with operatorship of the project.

Planning continued for the drilling of two deep wells at Padre Island in the second half of 2003 as well as two exploration wells for the Cooper Basin, Australia.

Dr Bob Williams, managing director of Novus Petroleum, said ongoing strong gas production for the Group is occurring in an environment of rising gas prices, underpinning our exploration and production strategy.

"In Padre Island, the company is well advanced and on track for its two deep wells later this year, and we are receiving an encouraging response from our farm-out program," Dr Williams said.

"Our 2D seismic acquisition program has also commenced in Oman and we expect to be shooting onshore in Oman and both onshore and offshore in the Emirates over the next few months."