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Warner & Blue Jacket Heavy Oil Formations

Location: Missouri

The Pennsylvanian Cherokee Group of sands, shales and thin shaley coals crop out in west-central Missouri and range in thickness from 200 to 300 feet in total thickness.  This Cherokee interval, with scattered heavy oil saturated sands, was deposited in thin cyclothem cycles and rests conformably on Mississippi limestones on the west flank of the Ozark Uplift.  The Warner and Bluejacket Sands contain most of the heavy oil reserves and oil resources that State and Federal sources estimate in excess of one billion barrels of oil.  Palo currently has a lease position over a major heavy oil deposit in Missouri and has drilled three pilot wells to develop these leases.  The Palo heavy oil production process is unique to the area using a combination of horizontal production wells and multi-zoned vertical steam injectors to provide top-to-bottom and North-South control of the steam front to maximize oil recovery.