Novus Energy reports a substantial increase to its reserves and production from its successful 2010 capital program. Fiscal 2010 represented the Company's first full year of operations under its current management.

The Company also reports on its operations relating to its fourth quarter 2010 and year-to-date activities.

The Company's year-end independent reserve evaluation was prepared by Sproule Associates Limited ('Sproule') effective December 31, 2010 (the 'Sproule Report').

2010 Reserve Highlights • Proved plus probable reserves at December 31, 2010 increased by 269% to 9.24 million boe, up substantially from 2.51 million boe on December 31, 2009. • Proved reserves at December 31, 2010 increased by 229% to 4.83 million boe, up from 1.47 million boe on December 31, 2009. • Reserve replacement for the year was 1,754% on a proved plus probable basis and 926% based on proved reserves. • The net present value of proved plus probable reserves, before income tax and discounted at 10%, increased 285% to $164.2 million from $42.7 million at December 31, 2009, representing an increase of $121.5 million. • On a fully diluted share basis, proved plus probable reserves increased 176%, while total proved reserves increased 147%. • The Company's Reserve Life Index at December 31, 2010 was 16.1 years on a proved plus probable basis and 8.4 years on a proved basis (based on annualized fourth quarter 2010 production). • Oil and natural gas liquids ('NGLs') at December 31, 2010 represent 84% of proved plus probable reserves on a boe basis up from 66% at December 31, 2009. Oil and NGLs represent 81% of total proved reserves, up from 62% at December 31, 2009. • Finding, development and acquisition costs, excluding future development capital, were $9.57 per boe for proved plus probable reserves and $18.13 per boe for proved reserves. Including future development capital, finding, development and acquisition costs were $25.77 per boe for proved plus probable reserves and $40.28 per boe for proved reserves. The 2010 finding, development and acquisition costs included significant amounts for land and facilities as the Company completed several land focused acquisitions and embarked upon certain facility projects as it assembled its extensive portfolio of assets. • In the greater Dodsland area of Saskatchewan, which encompasses the Company's core properties, the 2010 capital program resulted in a 475% increase in proved plus probable reserves. The Dodsland area accounts for 7.74 million boe of proved plus probable reserves which represents 84% of the Company's total proved plus probable reserve volumes. • Sproule previously provided Novus with an independent Contingent Resource Assessment for the Company's Dodsland Viking light oil assets (the 'Contingent Resource Assessment'), the intent of which was to independently assess the contingent resource potential of the area. The Contingent Resource Assessment, effective as at November 30, 2010 and press released on December 6, 2010, reports a 'best estimate' of Discovered Petroleum Initially-In-Place ('DPIIP') on Novus working interest and option lands totaling 559.5 million barrels ('MMSTB') of light Viking oil consisting of 383.2 MMSTB on Company owned land and an additional 176.3 MMSTB on lands under option to Novus. In the Contingent Resource Assessment, approximately 50% of the net acreage controlled by Novus (40.53 net sections owned and 13.53 net sections under option) was recognized by Sproule as containing DPIIP.

2010 Operational Highlights • The Company's average production was 1,115 boe/d. • The Company's fourth quarter average production was 1,571 boe/d. • December average production was 1,675 boe/d. • Operating netbacks in the fourth quarter for the Company's Viking light oil lands at Dodsland were $43.63 per boe. • In the fourth quarter, Novus drilled 17 Viking horizontal wells (17 net) in the Dodsland area for a 100% success rate. Over the year, Novus operated the drilling of a total of 33 gross (33 net) successful Viking horizontal oil wells. All but one of these wells is currently on production.

Key Viking Resource Play Novus had a very active and highly successful year in 2010. The large reserve additions the Company obtained were primarily generated in our key Viking light oil play at Dodsland in south western Saskatchewan. Almost 90% of our proved and probable reserve growth was associated with organic drilling versus acquisitions. Our attractive finding, development and acquisition costs, and healthy recycle ratio, validate our growth strategy of assembling a half billion dollar, multi-year drilling inventory within a highly concentrated core area. Our capital program in 2011 will be allocated approximately 80% to the Viking light oil resource play.

The Company's Contingent Resource Assessment estimate of 559.5 MMSTB of DPIIP demonstrates not only the significant success we have achieved to date, it also demonstrates a compelling opportunity for the Company to add significant reserves through improvements in recovery factors. Given the large oil resource the Company possesses, the magnitude of even minor improvements in recovery factors to the Company is great. Novus has successfully transitioned itself into a Company with a large oil resource asset base which provides years of lower risk oil drilling opportunities.

Tags: Novus Energy