VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 6, 2012) - Super Nova Minerals Corp. (CNSX:SNP) (the "Company", or "Super Nova") Wolf Wiese, CEO of Super Nova, reports that the Company has signed a Farm Out Agreement with Elk Hills Petroleum Canada Ltd. to acquire an 85% working interest to pay out, declining to a 50% working interest after pay out in the Morris Block, which contains 1900 acres in its entirety. The Company also acquired an 85% working interest to pay out and a 50% working interest after Payout in the Cottonwood Creek Block, which contains 2317 acres in its entirety, on the Elk Hills Project in the Big Horn Basin of Montana. Exercise of the options is subject to cash payments and completing a steam production test, on the existing Bauwens 15-13 well and installing a 5 spot on the Morris Block. The same conditions are for acquiring the Cottonwood Creek Block. A 5 spot consists of an injector well with 4 producing wells on 40 acre increments on the two Properties should they be warranted.
The Company intends to use a 25,000,000 BTU steamer with pressures up to 1500 psi to get the heavy oil flowing on the existing Bauwens 15-13 well, thereby determining the flow rate and lifting costs from the Tensleep Formation. The testing of the Bauwens 15-13 well is expected to be completed in late January 2013 and the completion of a 5 spot by the end of April 2013 contingent on the economics of the flow rates and lifting costs of the Bauwens 15-13 well the Company will install a 5 spot on the Morris Block.
Similar structures within 25 miles of the Elk Hills structure have produced in excess of 500 million barrels of heavy and black oil from the same reservoir that underlies the Elk Hills Prospect.
A report prepared as of September 18, 2012 in accordance with the standards contained in National Instrument 51-101 has been commissioned with B.L. Whelan P.Geo. for management's information at this time.
The Morris Block has Contingent Resources of 10,531,882 barrels of oil based on core data, electric logs and structural information. Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
The discovery well, Bauwens 15-13, was drilled, cored and acidized in 2012. The Bauwens well is located on an anticlinal structure on the downthrown side of the Bluewater Fault which extends in a north-northwesterly direction for 8.5 kilometers.
The Company also has an option to acquire an 85% working interest until payout and 50% working interest after payout in the Cottonwood Creek Block which lies to the north-northwest of the Morris Block. The Cottonwood Creek Block contains similar geology to the Morris Block and has an historic well drilled in 1983 which encountered 29 ft. of pay saturated with 100% oil. This is historic data and has not been verified. A well to confirm the 1983 well is to be drilled after testing the Bauwens 15-13 well.
Super Nova's Elk Hills Project consisting of the Morris Block and Cottonwood Block is located in an area which is actively engaged in development of heavy and conventional oil production. Refineries are located within 16 km., a gas pipeline within 15 km. and an oil pipeline within 16 km. Services are available in Billings Montana which is located 44 km. from the property.
The Company intends to place its 3 mineral properties into a wholly owned subsidiary with the intention of spinning out this subsidiary into a new public entity upon shareholders' approval. This will enable the Company to focus on the burgeoning heavy oil exploration and production within the area of the Elk Hills Prospect.
This news release was reviewed by B.L. Whelan, P.Geo. the Qualified Person under National Instrument 51-101 for the Elk Hills project.
Corporate Presentation Video (3 minutes): http://www.youtube.com/watch?v=HrHPhg_ZFFk&feature=youtu.be
Company Website: www.supernovaminerals.com
On behalf of the Board of Directors:
SUPER NOVA MINERALS CORP.
Wolf Wiese, President/ Chief Executive Officer
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