Precision Petroleum Corporation
OTC Bulletin Board : PPTO

Precision Petroleum Corporation

February 09, 2011 16:01 ET

Precision Petroleum Corporation: Potential Recovery of 20,000+ BBLS of High Gravity Crude and 100,000+ MCF of Natural Gas From McNeil #1 Well

OKLAHOMA CITY, OKLAHOMA--(Marketwire - Feb. 9, 2011) - PRECISION PETROLEUM CORPORATION (Nevada Company) (OTCBB:PPTO) -

The McNeil #1 well has been our center of attention over the past 3 weeks. The company geologists had advised that we needed to challenge the potential of this well. Accordingly, the pipe was perforated for 90 feet of Viola Lime and a major acid frac was performed in the Viola structure. The recompletion was successful, downhole equipment installed; frac water is being recovered and has been pumping as of February 08, 2011. We should have results within ten to fourteen days. Precision Petroleum Corporation believes that with the positive results from the frac on the McNeil #1, this well could become a significant revenue stream for the company.

Engineering estimates indicate that the recompletion could reasonably access an additional recovery of 20,000 plus BBLS of high gravity crude and 100,000 plus MCF of natural gas over the life of the well. The engineering estimates are comparable to the Russell #1 well which is a direct offset a half mile to the north. The Russell well to date has produced an estimated 2.4 million dollars in gross oil and gas using a measure of $80 per BBL and $4 per MCF.

In addition, Precision Petroleum Corporation is currently negotiating on an adjacent 80 acre lease to the SW which also trends to a Viola and other potential geological structures. This tract has a dormant well which would be utilized for a waste water disposal program. This offset lease could potentially support a 2 well drilling program. 

Richard Porterfield, Petroleum Engineer and President commented that, "Precision is now in an enviable position with increased cash flow, an attractive capital structure for funding and access to a multitude of new oil and gas prospects in Oklahoma and other States."

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; www.precisionpetroleumcorp.com.

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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