Super Nova Minerals Corp.
CNSX : SNP

Super Nova Minerals Corp.

September 18, 2013 14:48 ET

Super Nova Receives N.I. 51-101 Report on its Elk Hills Heavy Oil Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 18, 2013) - Wolf Wiese, President and CEO of Super Nova Minerals Corp. (CNSX:SNP) (the "Company" or "Super Nova") reports that the Company has received a National Instrument 51-101 report evaluating the Prospective Resources its Elk Hills Heavy Oil Project located 25 miles North of Billings, Montana, USA. This report was authored by Chapman Petroleum Engineering, located in Calgary Alberta.

The report states: "based on our analysis, after consideration of risk, we have concluded that the potential of these prospects is of sufficient merit to justify the work program being proposed, and we therefore recommend and support the Company's participation."

The economic and risk analysis, justifying the participation in this project is presented in the Discussion of the report and a summary of the "before and after risk" values for the Forecast Prices and Costs Case are presented below:

Company Net Value, Thousands of Dollars (US)
Before Risk After Risk
Undiscounted 411,126 180,223
Discounted @ 5%/year 258,681 113,148
Discounted @ 10%/year 167,687 73,110
Discounted @ 15%/year 111,500 48,388
Discounted @ 20%/year 75,754 32,660

This report was prepared by a "Qualified Reserves Evaluator and Auditor" who is independent of the Company.

The Morris and Cottonwood Blocks are located in an area with highly developed infrastructure: a major natural gas pipeline is only 7 miles away (natural gas is required for steamer operation); less than one mile from a major crude oil pipeline; within 10 miles of a large oil refinery and 25 miles from two additional oil refineries which are equipped to process heavy oil.

The following Table lists the gross prospective Heavy Oil Resources for three cases, the high estimate 21,846,000 bbl. best estimate 11,802,000 and low 5,620,000 estimate. The production estimate Rate column is in Stock Tank Barrels of oil per day (STB/d) for each of 4 producing wells per 5 spot.

Summary of Gross Resources
June 1, 2013
Elk Hills, Montana, USA
Description Predicted Initial Rate STB/d API Gravity (Deg) Structure
Area** (acres)
Number of 5-Spot Production Units Prospective Resources (MSTB)
Prospective Resources
Best Estimate
Morris Block Tensleep SS 100 11 320 8 4,292
Cottonwood Block Tensleep SS 100 11 560 14 7,510
Total Best Estimate 22 11,802
Low Estimate
Morris Block Tensleep SS 50 11 320 8 2,044
Cottonwood Block Tensleep SS 50 11 560 14 3,576
Total Low Estimate 22 5,620
High Estimate
Morris Block Tensleep SS 150 11 320 8 7,944
Cottonwood Block Tensleep SS 150 11 560 14 13,902
Total High Estimate 22 21,846

Notes: ** The structure area has been identified by surface structural closure.

Prospective Resources

Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be subclassified based on project maturity.

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.

Exploration History

The prospect has been identified on the basis of the electric well logs, core analysis and surface mapping. There are approximately 10 wells on the lease land and adjacent sections, most of which were drilled between 1920 and 1980, based on surface anticlines. The most recent well, Longshot Bauwens 15-13 (Sec 13, Twp. 58, Rge 248), was drilled, logged and cored on the Morris block in 2010, confirming the presence of heavy oil within the block; in 2012 the Bauwens 15-13 well was treated with an acid squeeze which showed a flow rate commensurate with a typical steam injection and confirmed the viability of the Tensleep Sandstone Formation.

Geology

The Elk Hills Property is located in the along the northeast margin of the Clarks Fork Basin in southern Montana just north of the Pryor and Bighorn Mountain ranges. It is one of a series of smaller basins that were formed in the Laramide Orogeny during the Early Tertiary along with the Crazy Mountains Basin to the north and the Bighorn Basin to the south in Wyoming. A heavy oil reservoir has been mapped on this property in the Middle Pennsylvanian Tensleep Sandstone, as shown on the Central Montana Stratigraphic Chart illustrated in Figure 2a. The Tensleep Sandstone is a widespread eolian deposit found in southern Montana and Wyoming found at an approximate depth of 1350 ft. in this area. The gross thickness of the reservoir sand in the Elk Hills Property varies from 20 to 60 ft. A log analysis of the Bauwens 15-13 well on the property shows 37 feet of heavy oil pay in the Tensleep Sandstone in a well which has a partial penetration of the zone.

A structure map of the Elk Hills Property based on aerial photography illustrates a large north-south trending anticline with two closed structural culminations on the Company lands. A possible oil-water contact based on log interpretation and heavy oil staining on samples gives the maximum amount of aerial closure of the heavy oil accumulation.

The Company is negotiating with several financiers to finance this project and is looking forward to a successful conclusion of these negotiations.

This news release was reviewed and approved by Charles Chapman, P. Eng., of Chapman Petroleum Engineering Ltd.

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. NEITHER THE CNSX EXCHANGE NOR ITS REGULATION SERVICES ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This news release may contain assumptions, estimates, and other forward-looking statements regarding future events. Such forward-looking statements involve inherent risks and uncertainties and are subject to factors, many of which are beyond the Corporation's control that may cause actual results or performance to differ materially from those currently anticipated in such statements.

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