Despite the decrease in sales revenue, Novus said the period was notable for its 13% increase in production volumes and significant exploration success. Gas production in the United States and Indonesia increased significantly while LPG production rose by 20% to 124,000 barrels.

During the quarter, Novus said its La Playa-1 well at Padre Island, offshore Texas was completed as a gas producer while logs indicated a gas discovery at its second well, Dunn-Murdock-1. Novus also increased its share in the Padre Island from 30% to 40% in the quarter.

In Indonesia, the second well of its three well program, Carat-1, discovered gas. This follow on the heels of the gas discovery at Tanggulangin-1 well although Grati-1 was a duster, Novus said.

During the quarter Novus also received official confirmation from authorities in Oman for the award of Block 31 while in Pakistan, Novus farmed out half of its 47.5% working interest in Bolan.

In its analysis of Novus, Deutsche Bank said the company's first quarter results come in below its revenue expectations however Novus' exploration program has significant upside potential, which makes the company an exciting trading idea. "We assess Novus' CY02 exploration program is worth 33 cents per share risked and $1.34 per share unrisked," Deutsche said.

Deutsche said its 12 month target price for Novus is $2.25. The stock is currently trading at $2.35.