Bill Carrigan Novus Energy NVS-X COMMENT May 27, 2013

Oil and gas producer in Viking area. 80% oil. Likes it. Take half a position now and half when they have advanced their projects further.

(Market Call Minute) Becoming more intriguing. Growing production 40% next year. They have to sell it or pay a dividend next year.

Announced mid-November that they were putting the company up for sale. Did a great job of growing production but hit a wall. Takeout value would be $1.15-$1.30.

Board has effectively said that the company is up for sale. Recent market transactions for their Viking assets would take fair value of $1.15-$1.30. Gain with today’s price would be $.05 to $.20 if they find a bidder. His trouble is that there are no real obvious acquirers.

Has been rumoured to have been for sale for a couple of years and now it is for sure. The problem is that there is a glut of assets for sale in Western Canada so they are joining a big queue of companies that are for sale. He always felt that the reserves were booked fairly aggressively.

Stuck in a holding pattern because everyone is waiting to see if they finally get a bid for the company. If they don’t, the production declines are probably a little higher because they have been growing production very aggressively. Risk reward is probably $.20 up and $.20 down which is not overly compelling.