Supernova Energy Inc. has provided a corporate update. Supernova Energy in recent months has commenced evaluation of its Kansas holdings and has also acquired acreage in Kentucky.
Supernova Energy has reached an agreement in principle with its current operator in Kansas to take over operation and ownership of a number of leases, some of which are producing, others are temporarily offline. The company recently had a representative visit the leases and is presently evaluating all of its holdings in the State. Supernova has received an operator license from the state of Kansas and intends to take over operations of its leases; the purpose is to lower operating costs and help the leases become more viable at current oil prices. Supernova's representatives have met with local professionals including, pumpers, oil and gas lawyers and geologists, and are now putting together a team to cost effectively operate the company's oil interests. With depths of approximately 4500 ft, Supernova believes the cost of production will be lower than other states with deeper well depths.
Supernova Energy has acquired a 140-acre lease in Russell County, Kentucky, holding an 87.5% working interest (WI) in the property and has drilled a single well, the slugger #1. The Company anticipates completion within the next few weeks and will report production after 30 days of being online. On the same lease, Supernova has signed a farm-out agreement with OMR Drilling to have up-to 10 wells drilled with no cost to the Company. Supernova Energy will retain a minimum of a 10% net revenue interest (NRI) in these wells. The Company has put a US$5000 deposit on an additional lease and is evaluating the lease's potential.
"Supernova Energy is taking the steps needed to increase revenue and asset value of the Company," stated Kevin Malone, CEO of Supernova Energy. "The recent decrease in oil prices has created an environment where leases can be acquired at a fraction of recent prices."
Edited from press release by Angharad Lock