VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 28, 2013) - Super Nova Minerals Corp. (CNSX:SNP) (the "Company", or "Super Nova") Wolf Wiese, CEO of Super Nova, reports that the Company has amended its farm out agreement with Elk Hills Petroleum Canada Ltd. to acquire an 87.5% working interest for the entire Elk Hills Petroleum land position of 14,444 acres in its entirety which contain the Morris Block and the Cottonwood Creek Block on the Elk Hills Project in the Big Horn Basin of Montana. (See news release Nov. 6th, 2012)
Exercise of the options is subject to cash payments and issue common stock of the company totaling 16,786,665 over 3 tranches when certain milestones have been achieved. An additional 3 million dollars is due Elk Hills, these payment will be derived from production should production be achieved. The companies will share revenues 50% each until Elk Hills has been paid $3,000,000 after this payment Super Nova will have 87.5% of all revenue. The company has to drill a duplicate to an historic well drilled in 1983 which encountered 30 ft., 100% oil saturated, on the Cottonwood Creek Block, complete a steam production test, on the existing Bauwens 15-13 well and install a 5 spot on the Morris Block or Cottonwood Creek Block. A 5 spot consists of an injector well with 4 producing wells on 40 acre increments.
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 April 2013 and the completion of a 5 spot by the end of July 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 and/or on the newly drilled well on the Cottonwood Creek 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. The Elk Hills Property is situated contiguous on the north south trending Bluewater fault for 24 KM. This fault controls the oil reservoir on the property.
A report prepared as of September 18, 2012 for the Morris Block on the property in accordance with the standards contained in National Instrument N.I. 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 acidization test confirmed that the heavy oil in the Tensleep Formation will flow. 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 24.5 kilometers.
The Cottonwood Creek Block on the Elk Hills Property 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 not N.I. 51-101 compliant. A non N.I. 51-101 report by P.Ted Doughty P.Geol written September 2012 lists the Gross Oil In-Place low estimate at 86 MMbbls, Gross Oil In-Place Medium estimate at 187 MMbbls and Gross Oil In-Place High estimate 288 MMbbls for the entire Elk Hills Project optioned by Super Nova Minerals Corp.
Super Nova's Elk Hills Project 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
THIS PRESS RELEASE WAS PREPARED BY MANAGEMENT WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. THIS DOCUMENT CONTAINS CERTAIN FORWARD LOOKING STATEMENTS WHICH INVOLVE KNOWN AND UNKNOWN RISKS, DELAYS, AND UNCERTAINTIES NOT UNDER THE COMPANY'S CONTROL WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE RESULTS, PERFORMANCE, OR ACHIEVEMENTS IMPLIED BY THESE FORWARD LOOKING STATEMENTS. WE SEEK SAFE HARBOR.
Neither CNSX nor its Regulation Services Provider (as that term is defined in the policies of CNSX) accepts responsibility for the adequacy or accuracy of this release.