2011-02-25-2011-01-24-2011-01-24

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
0MM
Description

Purchased a 5% WI in a seven-well package in Garvin County.

Shawnee, Okla.-based Precision Petroleum Corp. (OTCBB: PPTO) has purchased a 5% working interest in a seven-well package in Garvin County, Oklahoma, from an undisclosed seller. The purchase price was not disclosed. The effective date was Sept. 1, 2010.

The assets consist of Plummer #1, SE SE/4 Section 1, T3N, R2W; Plummer #2, SW NW/4 Section 6, T3N, R1W; Fuller #2, NE SE/4 Section 1, T3N, R2W; Fuller #3, SW SE/4 Section 1, T3N, R2W; Bromide SW SW/4 Section 6, T3N, R1W; and Kimberly #3 NW NW/4 Section 7, T3N, R1W. The deal also includes reconditioned downhole equipment and reconditioned surface equipment on each of the seven wells purchased. Upside includes an offsetting SWD well named Roach #1, NE NE/4 in Section 12, T3N, R2W.

Production from the producing well package comprises various productive horizons specific to each well, including the Deese sand, Viola limestone and Bromide sand. Future cash flow from gas production is expected as soon as all the wells are connected to the ONEOK gas pipeline.