SOURCE: Supernova Inc.

November 12, 2015 16:30 ET

Supernova Energy Inc. Has Completed the Transfer of Operations and Increased Ownership on Multiple Oil and Gas Leases in Kansas

ROCKVILLE CENTER, NY--(Marketwired - Nov 12, 2015) - Supernova Energy Inc. (OTC PINK: SPRN) ("Supernova" or the "Company") is pleased to announce it has acquired additional working interest and taken over operation of all of its oil and gas leases in Kansas. The agreement was closed on October 9th, 2015 and all transfer paperwork has been submitted to the state of Kansas. As part of the agreement, Supernova paid $41,500 and transferred a 23% working interest of the Welsh-Beaver lease for the assumption of lease operations and working interest assignments of the following leases:

  • Anderson lease - 8.375% working interest and lease operations.
  • Dannebohm lease - 72% working interest and lease operations.
  • Sanders lease - 30% working interest and lease operations.
  • Harrel D, Thompson, Keyes A, Keyes B, Larrison #2 Mason leases - 30% working interest and lease operations.
  • Asmussen lease - 27% working interest and lease operations.

As a result of this agreement, Supernova increased the working interest ownership on the following leases:

Barton County, KS - Anderson lease, to 8.375% working interest (WI) and the Dannebohm lease, to 95% working interest (WI).
Stafford County, KS - Sanders lease, to 65% working interest (WI).
Butler County - Asmussen lease, to 39.5% working interest (WI).
Pratty County, KS - Harrel D, Larrison #2, Mason #2, Keyes A, Keys B, Thompson leases, to 100% working interest (WI).

Currently, the Anderson oil lease is the only producing property; the Company plans to bring the Dannebohm and Asmussen back into production shortly. The Dannebohm lease is the Company's first priority and work has already begun. Supernova will assess all other oil assets for the most cost effective way to bring production back online.

Kevin Malone, CEO of Supernova, states: "This settlement agreement is an important start to increasing oil production in the state of Kansas. The transfer of operations is the key to properly assessing the leases and lowering the cost of production. With approximately 1300 acres under lease in Kansas our focus will be to determine new drill sites and identify wells that can be reworked and brought back into production quickly with low costs."

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 oil wells to increase production on existing oil producing leases. For more information investor can visit www.supernovaenergyinc.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

The foregoing contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We intend for these forward-looking statements to be covered by the safe harbor provisions of the federal securities laws relating to forward-looking statements. This release contains forward-looking statements that reflect Supernova Energy INC., plans and expectations. In this press release and related comments by Company management, words like "expect," "anticipate," "estimate," "goal" and similar expressions are used to identify forward-looking statements, representing management's current judgment and expectations about possible future events. Management believes these forward-looking statements and the judgments upon which they are based to be reasonable, but they are not guarantees of future performance and involve numerous known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance, achievements or financial position to be materially different from any expressed or implied by these forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements are set forth in our Form 10-K and other filings with the SEC. Other information can be obtained at www.supernovaenergyinc.com

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