Novus Delivers Strong Growth in Oil and Gas Business

Completed Drilling
of 33 Wells in 2021

Average Daily
Production Volume Surged by 130% YoY

 

HONG KONG SAR – Media OutReach – 16 December 2021 – Yanchang Petroleum International Limited (“Yanchang Petroleum
International” or the “Company”; Stock Code: 00346) is pleased to announce that
its wholly-owned subsidiary, Novus Energy Inc. (“Novus”), which
explores, develops and produces crude oil and natural gas in Saskatchewan
and Alberta in Canada, delivered outperforming operational results in its
Viking formation. The average daily production volume increased from 1,000 barrels/day
in December 2020 to 2,300 barrels/day currently,
representing a 130% year-on-year growth.

With the easing of
the pandemic and the recovery of commodity prices in 2021, the Novus team has
adopted a positive and aggressive well drilling plan in 2021. Amongst others, a
total of CAD41 million has been invested in the development of the Viking
properties to shorten the time between drilling and production and to maximize
profitability. In 2021, Novus has drilled 33 wells in the Viking formation,
four in Alberta and 29 in Saskatchewan, reaching a total length of 28.8km in
its horizontal section and achieving an industry-leading drilling speed of 2.9
days/well. Completion of the Viking wells is also in progress.

In addition, Novus
has successfully drilled a new well in the exploration area in Saskatchewan,
which has been fracture completed and has started production.

Mr. Feng
Yinguo, Chairman of Yanchang Petroleum International
, said, “We are pleased
with the operational results of Novus this year. The production ramp-up program
launched by Novus is proven to be successful. The Novus
team has strived to ensure the normal and safe operation of the formation
during the pandemic, and aimed to improve the efficiency of well drilling and
completion. With the global economy reviving, it is expected that demand will
drive up the oil price steadily. The Company will continue to seize favorable
opportunities, improve the quality and efficiency, and keep optimizing the oil
and gas business of Novus, thereby maximizing the benefits of the shareholders
of the Company.”

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