Citation Resources (ASX:CTR) is oil and gas exploration and production company.
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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