Petrified wood is a brilliant red stone found in small clusters in sedimentary layers, which is magma-safe. Petrified wood is no longer wood, but stone, so you cannot make wooden items from it. Treehuggers will be perfectly happy to trade items made of it, as well. Apart from its brilliant red color, it is otherwise unremarkable.
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While it is possible to create slabs out of petrified wood, these slabs possess no remarkable properties, and certainly not any that would transcend the pataphysical bounds of the game's world. Bay 12 has shown no indication that they will be made unobtainable in a future release.
Based on congolomorate