NVS: Building Land Position

MICHAEL ZUK, Stifel Nicolaus (10/06/2010)
"Novus now controls ~82.25 net sections in Dodsland. The company, like many other producers, was hit hard by wet weather during Q310, causing substantial delays to its H210 drilling program. We are encouraged by the company's increased exposure to the Viking in Saskatchewan, as well as its aggressive drilling strategy for a company of its size. We take note of the company's inference that it will still be drilling a minimum of 11 wells in Q410 but could drill additional wells at Rocanville and Dodsland. We reiterate our $1.10 target price and Buy rating."

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