Plano Petroleum, LLC Announces Successful Results from Horizontal Drilling Program in Cleveland Reservoir in Oklahoma

PLANO, Texas--()--Plano Petroleum, LLC announced today the preliminary results from its successful five-well horizontal drilling program in the Cleveland and Tonkawa tight oil sand reservoirs in Ellis and Roger Mills counties, Oklahoma, which the company began in mid-2011. Plano recently completed two horizontal wells in the Cleveland formation that targeted a prolific lower Cleveland sand member and one horizontal well in the shallower Tonkawa reservoir. In addition to the three new horizontal producers, Plano has commenced operations to drill two additional Cleveland wells on its acreage with production expected to commence from those two wells in the first quarter of 2012.

Plano completed its first lower Cleveland horizontal well in late July 2011 when the company drilled the Nelwyn #1H-7 in Section 7, T17N, R24W in Ellis County, Oklahoma. The well’s initial flow rate was 570 barrels of oil per day (BOPD) and 1.7 million cubic feet of gas per day (MMCFD). The Nelwyn #1H-7 well produced 31,315 barrels of oil, 10,727 barrels of natural gas liquids and 69 MMCF of dry gas during its first 90 days of production for an average production rate of 595 barrels of oil equivalent per day.

Plano’s second horizontal Cleveland well, the Sharon #1H-18, drilled in the lower Cleveland sand, is flowing back following a 14-stage hydraulic fracturing procedure to stimulate production in the tight formation. The Sharon #1H-18 well is located in Section 18, T17N, R24W in Ellis County. The well’s initial flow rate was 578 BOPD and 1.1 MMCFD. The company also reported that the Adeline #1H-4 well, a horizontal Tonkawa producer located in Section 4, T17N, R22W of Ellis County, flowed at an initial rate of 199 BOPD and 312 thousand cubic feet of gas per day.

“We are quite pleased with the success of our horizontal drilling program, especially in the Cleveland formation,” said Cory Richards, Chief Executive Officer and Chairman. “We believe there is significant, low risk development potential on our acreage block in the Cleveland and Tonkawa oil reservoirs, as well as the Cottage Grove and Cherokee oil reservoirs. We plan to continue adding value to our company by pursuing these formations.”

Exploration and production companies have drilled more than 1,070 horizontal wells in the Cleveland reservoir in the Texas Panhandle and western Oklahoma since 1995. Most of the wells have been drilled and completed in the upper Cleveland reservoir; however, Plano Petroleum and other producers now are aggressively developing a lower member of the Cleveland. During the last 18 months, 28 horizontal completions have been reported in this lower Cleveland play, noted as Marmaton in some regulatory filings, in southern Ellis County with an average initial rate of 514 BOPD and 1.3 MMCFD. Additional operators active in this “play within a play” include EOG Resources, Inc., Chesapeake Energy, Mewbourne Oil and Primary Natural Resources III, LLC.

The lower Cleveland sand, located at an average depth of 9,400 feet, has a gross thickness ranging from 50 feet to 120 feet, which makes it an ideal target for horizontal drilling. The lower Cleveland sand produces higher average oil rates than the upper Cleveland sand, and there is no depletion risk from prior production. The geologic limits of the lower Cleveland sand have yet to be defined by drilling. However, mapping from deeper subsurface control indicates the best quality lower Cleveland sand appears to be centered in southern Ellis and northern Roger Mills counties. Strong results have been reported with open-hole, packer-type completions and cemented completions. The accompanying map shows the location of Plano’s acreage block in the lower and upper Cleveland plays.

Plano has more than 13,250 gross acres (8,000 net acres) in this unique stacked pay area and owns production from horizontal wells in the Tonkawa, Cottage Grove, upper and lower Cleveland and Cherokee reservoirs. Plano is the operator of 19 sections with each section having one to four separate oil reservoirs prospective for horizontal drilling. The company’s acreage block is 87 percent held by production.

About Plano Petroleum

Plano Petroleum, LLC is a privately held independent oil and gas producer headquartered in Plano, Texas. The company is focused on horizontal drilling in several low permeability oil reservoirs in the Mid-Continent Region.

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Contacts

Plano Petroleum, LLC
Cory Richards, 972-372-2200
CEO & Chairman

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Contacts

Plano Petroleum, LLC
Cory Richards, 972-372-2200
CEO & Chairman