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 (ASX: CTR) has increased oil production from its Atzam-4 well in Guatemala to 140 barrels per day though this remains restricted due to limited onsite storage tank capacity.
Initial production had started at 100bpd on the 8/64ths choke though operator Latin American, which is 70% owned by Citation, has estimated open choke production of more than 1,000bpd based on flow rates achieved from various choke sizes up to 32/64ths since initial production.
Negotiations are underway with potential offtake parties for current and future Atzam oil production. These include ongoing discussions with a tier one, global oil and gas company.
Once this is place, the company will be able to bring the well up to full production.
Citation also expects an independent report on Atzam-4 reserves shortly. This is expected to be up from the previous Probable Reserve estimate of 2.3 million barrels of oil based on logging data.
Notably, upside potential exists in untested sections in Atzam-4. This include a 13 foot zone in the Upper C17 section that has better logs than the current producing zone as well as the C13 and C14 carbonate sections that have yet to be perforated and tested despite producing impressive oil shows during drilling.
The Upper C17 section had produced oil at an average rate of 610 barrels per day over 24 hours with a submersible pump during initial testing.
Citation plans to spud the Atzam-5 well in the September 2013 quarter. This will target the C13 and C14 sections.
These sections are the main producing zones in the nearby Rubelsanto Field about 17 kilometres northeast of Atzam that has produced over 30MMbbl of oil to date from eight wells.
Rubelsanto continues to produce more than 1,000bpd of oil, 36 years after its discovery.
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