Supernova Energy Inc. (OTCMKTS: SPRN) - Innovative Solutions Fueling Success


Supernova Energy Inc (OTCMKTS:SPRN) is a highly focused, risk-averse oil and gas exploration company with a focused strategy of building a substantial portfolio of oil and gas assets in low-risk areas. Supernova Energy Inc. will exploit projects which can deliver cash flows normally associated with higher risk projects, but without exposure to high-risk failure rates.

  • SPRN (Supernova Energy Inc.) is a highly focused, risk-averse oil and gas exploration company with a focused strategy of building a substantial portfolio of oil and gas assets in low-risk areas.
  • SPRN will exploit projects which can deliver cash flows normally associated with higher risk projects, but without exposure to high-risk failure rates. Our Company will target existing production in known oil producing states and apply new exploration technologies to increase production.
  • SPRN holds working interests in leases located in Kansas and Kentucky. The Company has targeted these states due to the low cost of drilling and exploration as well as their oil-friendly state and local governments.
The Company will target existing production in known oil producing states and apply new exploration technologies to increase production. Supernova Energy Inc. holds working interests in leases located in Kansas and Kentucky. The Company has targeted these states due to the low cost of drilling and exploration as well as their oil-friendly state and local governments.

OPEC just extended its production cut. Speculation is starting to build about a next leg higher in oil prices. SPRN has one of the most efficient models of turning small capital into big returns once the company starts widespread monetization of its leased wells.

According to company materials, “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 specialize in well bore completion, re-completion and workovers on existing oil and gas production.”


Recent Catalysts

The company recently provided some new details regarding the Company's productive oil and gas operations in Pratt County, Kansas.

The Pratt County Leases represent a land asset stretching 780 acres, for which the company has a 100% Working Interest.

“Supernova is operator and 100% working Interest owner of its Pratt County leases (5 leases totaling 780 acres) located within the established Sawyer Field and is currently producing both oil and gas. The Sawyer field has produced an accumulative 3,383,397 MCF and 2,137,418 barrels of oil from four pay zones, (Lansing-Kansas city, Viola, Simpson and Arbuckle); the first well was drilled in 1957…. Since taking control as operator of the Pratt County leases in late 2015, Supernova has successfully reworked and restarted production in two temporarily abandoned (TA'D) wells (Keyes A #1 and Keyes B). An existing salt water disposal well (Harrell D) on the leases was also refitted and ungraded in August 2016 to support increased production levels in the field. The Company expects to further upgrade equipment on producing wells to increase flow rate and decrease water cut…. There are several other currently shut-in and temporarily abandoned (TA'D) wells on the Company's Pratt County leases that are being considered for reworking. Supernova believes many of its Pratt County wells are also candidates for secondary recovery (gas injection and waterflooding).”

Kevin Malone, CEO of Supernova Energy, Inc., commented, "Our oil and gas producing Pratt County leases are an ideal project for Supernova to expand with a series of relatively low-risk well recompletions and workovers. The next step of this strategy is to have an engineering report commissioned to target the best recompletion candidates and to determine the best potential pay zones for each well. This same engineering report will also allow us to assess bringing gas production back online that could further add to our bottom line."

This matches up with what is so interesting about the company’s model: they seek to specialize in low-cost investment with potential big upside, especially if the price of oil is jacked back up by the Saudis later this year – and we think that’s likely. A trade like SPRN should move ahead of that type announcement, effectively discounting the coming news.


The company’s stated business model suggests the potential for profit margins as a return on initial investment at best-in-class type levels, which could potentially catch the eyes of some larger money managers over time if they can post results to match the model.

Symbol:  SPRN
Company:  Supernova Energy Inc.


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