ROCKVILLE CENTER, NY–(Marketwired – Dec 3, 2015) – Supernova Energy Inc. (
As the Company recently announced on November 3, 2015, three new wells have been drilled as part of the Company’s farm-out agreement, dated August 31, 2015. As a result of the drilling, Supernova’s team has determined oil is present in two, Antle #2 and Antle #3, of the three wells. Supernova’s drillers will be running completion on Antle #2 and further evaluating Antle #3. Each well has been drilled to an approximate depth of 1,650 feet at no cost to the Company which holds a 10% net revenue interest (NRI). Antle #2 will be producing oil from the Knox formation while Antle #3 had oil coming into the hole from the Murfreesboro formation. Of the two wells, the Company believes that Antle #2 is showing stronger potential for commercial production. The Company intends that an initial production (IP) rate will be reported once the completion is finished. Antle #1 will be assessed but due to the success of the other two wells, Antle #1 may be plugged and not completed. If plugged, Supernova will not incur any additional cost associated with that well.
Supernova’s CEO, Kevin Malone, commented, “Adding small, steady, low cost producing wells on diversified leases with proven partners is key to increasing revenue and profitability. We are extremely pleased with the results in Kentucky so far, and its fit with our strategy to limit risk by avoiding the high cost of drilling and operating while accumulating daily oil production.”
Supernova’s future plans for the Antle lease include an analysis of the drill logs and formation mapping, ultimately leading to an expert’s final assessment of the remaining areas on the lease to identify additional drill locations within the same formations. Considering the recent oil strikes on the lease, Supernova will consider conducting the drilling on its own to obtain a greater working interest (WI) percentage up to 87.5%.
Kentucky has a long and successful history of oil production. Currently the Kentucky Geology Survey (KGS) lists over 16,000 wells in production and declares over 3.4 billion barrels of oil are beneath the state of Kentucky. Wells in the area are shallow, the cost of drilling is quite possibly the lowest in the United States. Most wells in this region can recover oil at depths less than 2000 feet. It is currently less expensive to drill and operate in Kentucky than in any other state. Considering the lower costs, Supernova calculates the potential return of capital investment in as short as 12 to 24 months.
Kentucky has multiple pay zones including Sunnybrook, Stones River, Murfreesboro and Knox. There are currently no majors working here which helps keep associated costs low. Acidizing currently producing wells is a key technology implemented to increase oil production which has steadily increased in the state from approximately 6,000 barrels per day in 2011 to 9,000 barrels per day in 2014.
About Supernova Energy Inc.
Supernova Energy Inc. is an American based oil and gas production and exploration Company with key holdings in Kansas and Kentucky. The Company’s goal is to acquire economical leases in known oil and gas formations with low cost of recovery. The strategy is to avoid risk by using new technologies on shallow wells to increase production on existing oil producing leases. For more information, please visit the Company’s website at www.supernovaenergyinc.com.
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