Precision Petroleum Corp., Oklahoma City, (OTCBB: PPTO) says that its Teresa #1 well in Garvin County, Okla., in which it recently acquired an interest, has encountered the Deese sandstone formation in addition to the previously encountered Viola limestone formation.

Since 2004, Teresa #1 has produced more than 5,000 barrels of oil and 44 million cubic feet of natural gas.

Precision president Richard Porterfield says the Viola limestone formation is a consistent producer, displaying “excellent” porosity and that the Deese sandstone formation is above the Viola formation and behind pipe.

The company says as the Viola is depleted, it plans to perforate and fracture the Deese reservoir, which is expected to substantially extend the well reserves.

“The presence of the Deese reservoir provides a major economic opportunity for the company over the next several years,” Porterfield says.