Precision Petroleum Corporation
OTC Bulletin Board : PPTO

Precision Petroleum Corporation

March 10, 2011 09:15 ET

Precision Petroleum Corporation Thompson #2 Phase Two Re-Work

OKLAHOMA CITY, OKLAHOMA--(Marketwire - March 10, 2011) - Precision Petroleum Corporation (OTCBB:PPTO) has just completed their first attempt in shutting off saltwater on their Thompson #2 well in Garvin County, Oklahoma. Their procedure consisted of setting a retainer plug above the First Bromide Sand but failed in this attempt to shut off intrusive water. The company will now initiate their second stage of sealing off the saltwater by squeezing off the First Bromide Sand interval and the entire Viola Limestone, and then drill out and re-perforate and acidize the Upper Viola Limestone in order to isolate the saltwater from below. Richard Porterfield, a Petroleum Geologist and President of Precision Petroleum Corporation, states that this second stage is the most strategic operation in the endeavor to seal off the saltwater and preserve the upper producible oil cap. A successful second stage cementing procedure will allow oil production with only minimal produced water which is common in this reservoir for Garvin County. A direct east offset has produced in excess of 22,000 barrels of oil from the Viola Limestone along with a direct south offset that has produced over 25,000 barrels of oil from the Viola, and a successful cement plug in the Viola Limestone should possibly allow similar accumulations.

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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