Range Resources (LON:RRL, ASX:RRS) highlighted that testing has started on the Atzam 4 well in Guatemala.
The AIM quoted firm has a 24% indirect interest in the well, via its shareholding in Resources (ASX: CTR).
Citation’s 70% owned associate, Latin American Resources, has started flow testing the two most prospective oil bearing reservoir units in Atzam-4.
The C13 and C14 carbonate sections in the well were considered the most prospective oil bearing reservoir units in the well, based on the electric log data, and were independently confirmed following review of all the well data by industry experts, including Schlumberger.
Both zones are the main producing zones at the Rubelsanto Field just 17 kilometres to the northeast that has flowed over 30mln barrels of oil to date from eight wells.
Following completion of testing, the plan is to install a gas separator on the electrical submersible pump for further evaluation of the oil production potential from Lower C17/Upper C18.
These sections had produced oil at an initial rate of 50 barrels per day with limited ESP performance due to gas production.
Ralph E Davis and Associates (RED) have estimated that Atzam-4 holds probable reserves of 2.3 million barrels of oil based on the results of the logging and the analytical work completed by Schlumberger.