Precision Petroleum has entered into a letter of intent with Nitro Petroleum to purchase 50% of a new venture in the Powder River Basin Project in southern Montana, US.
According to the company, the initial project (Phase-1) is scheduled to be started by late spring or early summer 2009 with the drilling of 10 exploratory wells consisting of 1,600 acres.
Precision Petroleum has said that phase-1 shows good response considering each initial well has been picked adjacent to nearby show wells and/or production. Each new well will be drilled on 40-acre spacing but will hold a 160-acre unit.
With the completion within a 160-acre unit, an opportunity to drill up to three more wells is allowed for, optimizing offset potential. After the initial 10 wells are drilled, commensurate with production, the company has the option of entering into two additional 10-well drilling phases as outlined in Phase-1.
Precision Petroleum is an independent energy company engaged in the acquisition, exploration and development of oil and natural gas properties in the United States. The company’s objective is to seek out and develop opportunities in the oil and natural gas sectors that represent a low risk opportunity.
