Citation Resources Limited (ASX: CTR) is oil and gas exploration and production company, with interests in two development and exploration blocks in the South Peten Basin in Guatemala. The company has successfully completed its first well, and is looking to increase its current production to 900 BOPD by the end of 2013, and 1,500 BOPD by the end of 2014
Citation Resources targets higher oil production with Atzam-5 development well in Guatemala
Citation Resources (ASX: CTR) will drill within the next few days the Atzam-5 development well in Guatemala that could allow it to meet its targeted production rate of more than 600 barrels of oil per day.
Atzam-5 is located 1,100 metres southeast of the Atzam-4 production well and is designed to test the same carbonate reservoir intervals.
It will be drilled to a target depth of about 4,100 feet to intersect the C18 and C19 carbonate reservoirs as the primary objectives as well as the current producing C17 carbonate reservoir.
The Harold Lee 500 drill rig now set up on location with the drilling mast set in place and auxiliary equipment now being connected.
Production from the Atzam-4 well has continued over the last six months with oil produced being sold under contract to Perenco Guatemala that generates pre-tax netbacks of approximately $55-60 per barrel.
The well is producing at about 110 to 120 barrels of oil per day following a planned maintenance program in late December.
Atzam-4 continues to produce from natural reservoir pressure without the need for a submersible pump to assist flow rates with no water production to date.
Operator Latin American Resources will increase the choke over a period of time to establish the optimal production rate for this producing carbonate section.
Independent reservoir engineers Ralph Davis have advised that the well could be produced at an optimal production rate of 466 bpd, whilst maintaining the reservoir’s structure and integrity.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.