The company said the profit was a direct benefit of the move into the US sector along with higher gas prices in the region which helped to offset a stronger Australian dollar.

The average realised US gas price was $US5.68 per million British Thermal Unit (btu) in the first half of FY03, compared to $US2.78 per btu in the previous corresponding period.

Novus managing director Bob Williams said increasing gas production at Novus' Brantas site in Indonesia and reduced operating costs following the sale of the Malacca Strait gas business were also major contributors to the increased profits.

"Brantas has been particularly pleasing and the new gas sales contract recently signed has turned a previously sleeping asset into a strong earner for the Group.

"This half-year has been a period of driving and consolidating our E&P strategy. Higher US gas prices and the imminent new revenue when our NUL 13#1 discovery well comes on-stream, are a strong validation of that strategy," Dr Williams said.

Novus said its cash flow fell 11% to $30.1 million, because of the strong local currency and the loss of revenues from Malacca Strait.

The sale of Malacca enabled Novus to reduce debt by $31 million to $122 million, lowering gearing to 41%. Dr Williams said the proceeds are being targeted for acquisitions in the vicinity of $10 million, possibly in the form of bolt-ons.

Novus is also increasing exploration activity later in the year with plans for two more wells at Padre Island in the US and seismic surveys underway in the United Arab Emirates, Oman and East Java.

Each of the two projects in Padre Island has been estimated to have in excess of 100 billion cubic feet.