Novus Energy Retains Sector Performer Rating At CBIC

Analysts at CBIC reiterated Sector Performer rating on the shares of Novus Energy Inc. (NOVUF.PK) following a strong quarterly financial results. They set a price target of $1.15 per share for the stock.

CBIC analysts state that Novus Energy's CFPS of $0.04 was in line with their estimate of $0.04 and 175 percent higher than FY 2011 Q2. Reported production of 2,159 BOE per day including 80 percent oil or liquids was substantially in line with analysts' estimate of 2,250 BOE per day including 81 percent oil or liquids) and 64 percent higher than FY 2011 Q2. They add that Novus is on track to meet its 2011 exit guidance of 3,000 BOE per day with its current production of 2,850 BOE per day. Although analysts' expected the exit rate to be achieved in early FY 2011 Q4, they are still encouraged by NVS' production growth this year. They expect 2011 PPSG of 67 percent versus the junior group at 15 percent. The company demonstrated a trend of improving operating costs, which should continue in 2012 due to investment in infrastructure. Analysts estimate the 2012 cash flow netback to be $44 BOE, which is top quartile for junior companies under coverage.

Novus Energy is a junior oil and gas company that is engaged in the acquisition, exploration, development, and production of petroleum and natural gas reserves in western Canada. It has a market capitalization of $128.73 million with a P/E ratio of 108.43.

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