Devon Shire
Long only, newsletter provider, oil & gas, small-cap

Novus Energy - Cheap, Growing Rapidly, And Apparently Up For Sale

Introduction

Novus Energy (OTC:NOVUF) has a simple story, and for many months, I have considered it my favorite place for new money.

Novus is an oil-focused junior producer with production from a single play in Western Canada. That play is called the Viking and its low development cost ($930k per well) and fast payout ratio (1.5 years) are perfect for a small producer looking to grow through internal cash flow.

Management History - Insider Ownership

Most of the Novus management team was part of the growth story of Gentry Resources Ltd., an oil-weighted exploration and production company, that over eight years grew from initial seed financing of $2.5 million ($0.22 per share) to $300 million ($4.19...

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