Having experience and foresight to quickly identify a problem and a solution in today’s fast-paced business world can mean the difference in a successful business endeavor and a failed one.
Moreover, it can create opportunities where others may not see a possibility. In the world of oil exploration, getting every drop of oil out of a well in a timely manner is critical to operations. Obviously, the more wells that a company owns and the more oil that can be pumped every day, the more revenues that can be generated.
That’s not exactly an industry secret. It is, however, a formidable challenge for junior energy exploration companies to achieve success.
Shawnee, Oklahoma-based Precision Petroleum Corp. (OTCBB:PPTO), an independent energy company engaged in the acquisition, exploration and development of oil and natural gas properties in North America, is a company that is making things happen since the start of 2011.
Since the start of the year, Precision has announced the purchase of a 5% working interest in a seven-well package located in Garvin County, Oklahoma, including reconditioned downhole equipment along with reconditioned surface equipment on each of the seven wells purchased.
These are producing wells, but offer a significant upside due to factors such as several wells having an uphole zone that have not been produced in the area, but calculations are productive on logs and natural gas production capacities as soon as the wells are connected to the ONEOK Gas Pipeline.
Last week, Precision announced the recompletion of the McNeil #1 Well in Garvin County, Oklahoma, for which it owns a 10% working interest. Precision is anticipating the results of the recompletion within the next few days with hopeful representative production as in a nearby producing well which has produced 28,445 BBLs of oil with 152,973 MCF.
Today, the Company announced that it has purchased 58.375% of the Thompson #2 well located in Garvin County, Oklahoma, which is currently producing from the Viola Lime hydrocarbon-structure. The company now has interests in 26 wells in Oklahoma with this latest purchase. As mentioned at the beginning of this article, the ability to make assessments is crucial to operations.
Precision’s President Richard Porterfield, a petroleum geologist, has advised that the Company will be immediately proceeding with a remedial work-over to the well which will entail a cement squeeze on a lower formation which will prevent salt water from entering the Viola reservoir.
Mr. Porterfield stated that the intrusion has a major impact on production capacity and anticipates that the cement squeeze should result in oil production increasing two to three-fold by allowing the well to produce from the Viola which previously had a very promising production capacity.
Other wells in the area have produced more than 22,000 bbls, but have not been subject to the intrusion as the Thompson #2 well has. Much like the actions being taken with this well, Precision intends to continue its efforts to bring all of its leases to maximum production through its superior production techniques and engineering solutions.
Technically speaking, the PPTO chart has been pressed against resistance at seven cents for nearly two weeks, but the news today gave the chart the push that it needed as volume continues to pour in and the stock has surged through the resistance to test its 52-week high achieved last April.
The price per share has risen nearly 1000% since hitting lows of one cent in December 2010. While the company was relatively quiet throughout the third and fourth quarters of 2010, investors are taking notice of this junior oil and gas exploration company and the price per share has reflected the newfound interest.
