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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.  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 previously held a lease position over a major heavy oil deposit in Missouri and drilled three pilot wells to develop these leases.  The Palo heavy oil production process was 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.  Palo eventually had to P&A the Bushwhacker Project after the oil price plunge of 2014-2016.