Precision Acquires Interest in Thompson O&G Producer in Oklahoma
Precision Petroleum Corporation advised that as a continuation of the company's objectives to acquire proven and producing oil and gas leases, the Company has acquired an interest in the Thompson #1 well located on section 18, T4N-R2W, Garvin County, Oklahoma.
The Thompson #1 was drilled in late 2005 and has produced an impressive 22,000 barrels of oil and 51 million cubic \\ feet of natural gas to date. The Thompson well produces from the prolific viola limestone at a depth of 5300 feet. The company has been alerted by its petroleum technical advisors to drill a step-out to the existing wellbore which is a location between 2 existing producers.
Richard Porterfield, petroleum geologist and company president stated that the offset plan is scheduled for July 2009. We expect the new location to significantly increase the production from this lease. Mr. Porterfield further comments that because oil prices are now approaching 50 dollars per barrel and industry expectations suggest continued increases in that price, the dual well production will put the company in an optimum position to benefit from this project.