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 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.
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.
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