»Our History
Palo Petroleum, Inc. (“PPI”) is a privately owned oil and gas company which has focused on the acquisition and development of low to medium risk oil and gas prospects since 1976. Since its inception, the company has conducted numerous drilling programs and joint ventures, resulting in 241 commercially productive wells out of 286 drilled. To date, the company has confined the majority of its drilling activities in proven oil and gas trends in North, East, West and West Central Texas, Oklahoma, Wyoming and the Rockies. The principal founder and majority stockholder of PPI is James P. Graham, President and Chief Executive Officer. Mr. Graham is the third generation of Graham’s to become a successful independent oil and gas operator. He has recently been joined at PPI by his son, Jace Graham, who represents the fourth generation of Graham’s to be in the oil and gas business.
According to Petroleum Information, PPI completed two of the four largest producing wells in West Central Texas during 1977. The John Nunally #1 was the discovery well for the Blind Hog (Ranger) Field in Eastland County, Texas, and completed with a daily flowing potential of 278 barrels of oil per day (BOPD) at 3,000 feet. A confirmation well, the D. Lasater #1, potentialed 13,000,000 cubic feet of gas. Subsequent drilling by PPI and other oil and gas companies expanded the field to encompass approximately 10,000 acres. Prior to the sale of these wells in 1981, PPI had ownership in 70 of the 120 wells in the field. The discovery of the Blind Hog Field provided a successful beginning for PPI, and that success has continued for the past three decades.
On the heels of the successful development of the Blind Hog Field, PPI became one of the most active operators in the Spraberry-Dean trend of West Texas. PPI has drilled or participated in approximately 200 Spraberry-Dean and Grayburg-San Andres wells in the prolific Permian Basin of West Texas.
PPI has distinguished itself as one of the successful pioneers in coalbed methane technology and operational expertise. It is PPI’s intention to remain active in coalbed methane development. In addition to its Picnic Flats Project located in La Plata County, Colorado, PPI assembled major coalbed methane projects in New Mexico, Washington and Wyoming. PPI’s Picnic Flats Project has estimated recoverable reserves in excess of 100 BCFs. PPI has operated coalbed methane projects for Amoco, Arco, Texaco, Boeing and others.
Currently, PPI is very active in the Barnett Shale play in North Texas, the Spraberry-Dean trend in West Texas and the Cotton Valley/Bossier Play in East Texas. PPI has working interests in approximately 40 Barnett Shale wells in Tarrant and Denton Counties, Texas, and is assembling acreage blocks for future Barnett Shale development in Parker, Johnson, Tarrant, Bosque and Hamilton Counties, Texas. PPI, along with its partner, Wells Fargo Energy, is also involved in a joint development project with XTO Energy in the Cotton Valley Basin trend in Limestone County, Texas.