Superior Oil & Gas Co. (SIOR.OB) is “One to Watch”

By IBTimes Staff Reporter | January 26 2010 11:08 AM

Superior Oil & Gas Co. operates as an oil and gas exploration and development company. The company received incorporation as Western States Resources, Inc. in February 1989. They changed their name to Red River Resources, Inc. in March 1997. They later changed their name to Superior Oil and Gas Co. in June 1997. Superior Oil and Gas has their headquarters in Oklahoma and trades on NASDAQ’s OTC Bulletin Board.

Sponsorship Link

Superior Oil & Gas Co. has interest in oil and gas leases. These total 2,883 acres worth of leases that reside in Oklahoma and Texas. The Company primarily serves marketers and other purchasers, as well as public utility companies.

The Company drilled two oil and gas wells late in 2006, which underwent initial completion in 2007. The neutron log on the Windy Vista #1 well in Garfield County, Oklahoma indicated numerous formations, which may contain oil or natural gas. Initial completion attempts on the Wilcox Formation were not commercially successful, Superior believes, due to a poor cement job. They have now completed the well in the Mississippi zone. That well was lost due to a legal judgment in the third quarter of 2009.

Initial completion attempts in the Wilcox Formation on the Lonesome River #1 well in Blaine County, Oklahoma indicated substantial amounts of water. The well has now undergone completion in the Viola zone. Superior also fractured the Hunton and Mississippi zones to enhance production on this well. The Company has only been able to get minimal production from this well. Therefore, it has been shut in and the lease lost due to non-production.

Superior Oil & Gas Co. drilled the Chickie #1 and Gayla #1 wells in Logan County Oklahoma in late 2007 and early 2008. Additionally, they did a recompletion on the Lindsey on the same lease during that period. Due to completion problems on the wells, they have only been able to get minimal production on the wells.