Precision Petroleum Corporation
OTC Bulletin Board : PPTO

Precision Petroleum Corporation

May 06, 2011 09:15 ET

Precision Petroleum Corporation Announces Commencement on Rework of Plummers #1 & #2

OKLAHOMA CITY, OKLAHOMA--(Marketwire - May 6, 2011) - Precision Petroleum Corporation (OTCBB:PPTO) is in the process of having its Plummer #1 and Plummer #2 wells recompleted by the operator of record in order to enhance their current oil production. The wells are located in Garvin County, Oklahoma, with Plummer #1 being in the SE, SE, SE/4 of Section 1, T3N, R2W, and Plummer #2 located in the SE, SW, NW/4 of Section 6, T3N, R1W. The wells are within one-half mile of each other, making it a cost effective venture. A field saltwater disposal well is available in the NE/4 of Section 12, T3N, R2W for any produced water that may be incurred, making this area very cost effective.

Plummer #1 was originally drilled and completed in the Upper Viola Limestone with segmented perforations from 5152' through 5206' that initially produced 105 BOPD with 150 MCFG/D along with some water. To date, the well has produced well over 43,000 barrels of oil and cummed in excess of 150 million cubic feet of gas just from the Upper Viola. The current plan is to perforate the Lower Viola from 5263' through 5295' in an attempt to revitalize the well and hopefully re-establish production to approximately its original initial production, which Precision and its partners feel is possible. This process will entail perforating, acidizing and fracture treating, which are all normal procedures for this zone in this area of Garvin County, and as mentioned earlier, a field saltwater disposal well for any produced water is available, which slightly mitigates any incremental costs.

Plummer #2 was also assessed as to its viability of being reworked and it appears there are two zones of interest with the lower interval at 5381' to 5389' (8') being located in the 1st Bromide sequence. Although slightly thin, this zone produces copious quantities of oil in this region and should not be overlooked for being slender even though the saltwater saturation in the sand is slightly elevated. Shooting the upper few feet of most Bromide Sands usually inhibits any large, measurable, vertical migration of water from lower sands assuming good cement bonding. The second zone of interest is the Lower Viola Limestone; as in the Plummer #1 with perforation intervals being from 5107' through 5152' which demonstrate some dolomization on logs which should enhance any available permeability. Anticipated oil production could possibly be in the range of 50 BOPD, assuming light to moderate water production. Typically, dolomite zones have some bound water in this particular formation for Garvin County, which sometimes will produce water, but it is usually out-performed by its oil production.

Richard Porterfield, President of Precision Petroleum Corporation, believes there is a viable possibility of sustained oil production from both of these wells for numerous years to come, and an available field saltwater disposal well only increases the profitability of the area. With oil prices steadily climbing, this remedial work should be performed as soon as possible as to optimize cash flow and build reserves for Precision and its partners.

About Precision Petroleum Corporation

Precision Petroleum Corporation is an independent energy company engaged in the acquisition, exploration and development of oil and natural gas properties in North America. Precision's objective is to seek out and develop opportunities in the oil and natural gas sectors that represent a low risk opportunity. As well, Precision aims to define larger projects that can be developed with Joint Venture Partners. More information about the company is available at

Safe Harbor Statement

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company does not intend to, and undertakes no duty to, update any such forward looking statements to reflect the impact of circumstances or events that arise after the date such forward looking statements were made.

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