Major Banner oil discovery still being researched

The Nebraska Oil and Gas Conservation Commission says it is too early to say a major oil discovery in Banner County announced by an Australian firm will actually produce oil.

Blackstar Petroleum announced in May it has drilled two wells in the Niobrara shale in Banner County that could contain from 4.3 million to 23.2 million barrels of oil according to independent consultants.

Nebraska Oil and Gas Commission Executive Director Bill Sydow says he believes the potential may be there for oil production but at this point Blackstar needs to comprise a lot more data before we know whether the find will produce oil.

Sydow said Blackstar has leased 40,000 acres and its announcement may be attempting to 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 United States.

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