logo-loader

Citation Resources increases Guatemala oil production

Last updated: 16:48 20 Feb 2014 EST, First published: 17:48 20 Feb 2014 EST

citation_resources_atzam_oil_field_location_358_5306869e49a74

Citation Resources (ASX: CTR) has ratcheted up production at its Atzam-4 production well in Guatemala to 170 barrels of oil per day and continues to drill ahead at its Atzam-5 development well.

The production increase at Atzam-4 follows a similar increase to 150bpd in mid-January. 

Notably, the well continues to produce at a flowing well head pressure currently in excess of 200 psi and without any water production to date.

Atzam-4 continues to produce from natural reservoir pressure without the need for a submersible pump to assist flow rates, which is usually required for producing these carbonate reservoirs. 

The well production plan is to continue increasing the choke over a period of time to establish the optimal production rate for this producing carbonate section.

Atzam-5


Operator Latin American Resources, which is 60% owned by Citation, has drilled Atzam-5 down to 1,250 feet over the past week and the first intermediate casing string has now been set in the well.

With the 13 3/8 inch intermediate casing now cemented in place, the rig will shortly commence drilling ahead towards the initial target reservoir sections expected from approximately 1,700 feet.

LAR plans to run a second intermediary casing string once the well is drilled down to about 3,200 feet, just above the primary C18 and C19 carbonate reservoirs.

Atzam-5, located about 1 kilometre southeast of Atzam-4, targets the C18 and C19 carbonate reservoirs that produced strong oil shows in the producing Atzam-4 but were unable to be flow tested. It will also intersect the current producing C17 carbonate reservoir.

Atzam-4 well alone has Proved and Probable Reserves of 2.3 million barrels of oil.

Range Resources (ASX: RRS) has a 19.9% stake in Citation.

 

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.

Coniagas Battery Metals secures new key ground with focus on...

Coniagas Battery Metals (TSX-V:COS) CEO Frank Basa joined Steve Darling from Proactive to announce the company's strategic acquisition of key ground near SOQUEM’s Cardinal Property, located 80 km southeast of Chibougamau, Quebec. This acquisition underscores Coniagas’ commitment to capitalizing...

38 minutes ago