Novus Petroleum acquires stake in Texas project

Novus Petroleum Ltd., Sydney, Australia, signed an agreement with BNP Petroleum Corp. of Texas to gain a 30% interest in the Padre Island Project Area, in which Novus plans to spend $3 million on drilling activity this year. Novus Managing Director Bob Williams said the Padre Island Project was part of Novus' strategy of identifying commercial investment opportunities in countries having developed gas markets.


By the OGJ Online Staff

HOUSTON, May 17 -- Novus Petroleum Ltd., Sydney, Australia, signed an agreement with BNP Petroleum Corp. of Texas to gain a 30% interest in the Padre Island Project Area in which Novus plans to spend $3 million on drilling activity this year.

Novus Managing Director Bob Williams said the deal was part of Novus' strategy of identifying commercial investment opportunities in countries having developed gas markets. It already has production assets in Australia and the Middle East.

"Padre Island provides Novus with an opportunity to access the dual benefit of entry into the lucrative US gas market and a potential early cash flow as well as low onshore production costs," Williams said.

BNP Petroleum operates the project, off Texas, and is looking for new gas accumulations as well as unexploited gas pools within shut-in Padre Island fields. To date, 21 fields have been developed in the area, from which there has been cumulative production of 1.7 tcf.

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