TOO SOON TO KNOW IF BANNER COUNTY OIL FIND WILL PRODUCE

Posted 10 months ago

By John Axtell

Bill SydowThe head of the Nebraska Oil and Gas Conservation Commission says it is too early to know if a major oil discovery in Banner County announced in May by an Australian firm will actually produce oil.

Blackstar Petroleum has drilled two wells in the Niobrara shale in Banner County that  independent consultants say could contain from 4.3 million to 23.2 million barrels of oil, and Commission Executive Director Bill Sydow believes the potential may be there for oil production.

Sydow’s hesitant to speculate beyond that, saying Blackstar needs a lot more data before knowing whether the find will produce enough oil at a low enough price to be feasible.

Blackstar has leased 40,000 acres, and Sydow says the company’s announcement may be aimed more at its industry and funding, an attempt get some extra partners to do some exploratory drilling and gain more test data.

Blackstar is a relative unknown in U.S. oil production and the Banner County find is its only project in the country.