Abstract: A method for lateral drilling into a subterranean formation whereby a shoe is positioned in a well casing, the shoe defining a passageway extending from an upper opening in the shoe through the shoe to a side opening in the shoe. A rod and casing mill assembly are inserted into the well casing and through the passageway in the shoe until a casing mill end of the casing mill assembly substantially abuts the well casing. The rod and casing mill assembly are rotated until the casing mill end substantially forms a perforation in the well casing. An internally rotating nozzle is attached to an end of a hose and is pushed through the passageway and the perforation into the subterranean formation, and fluid is ejected from tangential jets into the subterranean formation for impinging upon and eroding the subterranean formation.