Super Nova Petroleum Corp., has received information from the management of Augusta Exploration LLC (“Augusta”) that the preparation to drill Augusta – Krone Bakken Formation well is complete. The well-pad and road has been built, inspected and approved. Montana Board of Oil and Gas has approved and permitted the well. The funds required for the drilling has been deposited in escrow to FX Drilling Co Inc. (“FX Drilling”). Subject to weather conditions, the drilling rig will be rigged up by Friday, October 10th, 2014.
This well is located approximately 3-4 miles from Super Nova’s Milford Colony land, with its recently drilled BNV Eagle #1 Well, as reported on Oct. 1st, 2014. The well to be drilled by Augusta is in very close proximity to the historic 1962 Shell Krone Well, which encountered the Bakken formation at approximately 7,000 feet. The techniques to extract oil from the Bakken shale were not available at this time. Upon encountering the Bakken Formation the hole will be cored and logged.
Super Nova earns 20% of the well and two sections (T/R 18N/5W S 31 & 32) totaling 1280 acres gross, by issuing 7,000,000 of its shares and 5,000,000 warrants exercisable at $0.10 for two years. The shares will be issued once the Bakken formation has been cored and logged. The two sections are subject to royalty burdens of 15%. Super Nova will retain a carried working interest of 20% in the initial well through to placing of the initial well onto production. After drilling, completing, equipping and placing into production of the initial well, all parties will assume a “heads up” status and carry proportional shares of the costs (Augusta 80%, Super Nova 20%) in subsequent operations.
The drilling of the deep well to the Bakken formation allows the Company to gather information regarding the economic viability of the Bakken formation in this geographic area. Super Nova’s Milford property overlays the Bakken formation less than 3 miles away. The well and the properties are located in the southern portion of the Alberta Bakken Fairway in North-West Montana. With the drilling of this well, and the pending test swabbing of the BNV Eagle #1 well, this is destined to be an interesting time for Super Nova Petroleum Corp, in anticipating results from the two wells.