Novus managing director, Dr Bob Williams, said that the main drilling leases have been acquired, Novus and the operator, BNP, would now concentrate on getting ahead with an aggressive drilling program.

"The program to unlock a potentially significant amount of gas from Padre Island is now in place," Dr Williams said. "Last week we announced that our first well in the Padre Island area, La Playa-1, had discovered gas, which we expect to have on production within the next few weeks."

Novus believes that success with any of the six or more wells it plans to drill at Padre Island this year would have a major effect on the company. The company has estimated at current gas prices, a 100 billion cubic feet of gas equivalent (bcfe) net discovery would be worth A$153 million or 84 cents per share to Novus.

The second well in the program is expected to spud in February on the stacked Tomato and Murdock prospects. Novus has particularly high expectations for Murdock after modern 3D seismic indicated the structure could contain significant gas reserves.

"Of course there are many uncertainties remaining before we drill the well, but we believe Murdock could deliver 100 bcfe net to Novus, or even substantially more," Dr Williams said.