Range Resources (ASX: RRS, AIM: RRL) associate Citation Resources (ASX: CTR) provided an update on the Atzam #4 Well in Guatemala, with highlights including production being underway from the perforated section in the Upper C17 carbonates (2,846-2,853ft).
Citation said that strong initial production performance - flow rate restricted to 100 bopd on a small 8/64ths choke, well head pressure of 400 psi, production of 100% oil cut at 36 ‐ 38° API and no water.
Operator estimates a flow rate of 1,000 bopd on an open choke based on flow rates achieved from various choke sizes up to 32/64ths - optimal flow rate to be established in coming weeks.
Production storage tank capacity
Citation added that the current flow rate was restricted due to limited onsite production storage tank capacity of 7,000 barrels - currently 3,000 bbls from Atzam #4 produced in tanks and ready for immediate sale.
The upgrading of oil storage facilities is underway, with negotiations advancing with offtake parties for current and future production.
Reservoir pressure testing operations have been completed, with independent reviews underway to produce updated well reserve report.
Other highlights outlined by Citation included:
- Current Probable Reserve estimate of 2.3m barrels of oil in Atzam #4 well expected to be upgraded;
- Significant Upside Potential Remains Untested in Atzam #4 - 13ft zone in Upper C17 with better logs than current producing zone will be perforated and tested in future production operations;
- Highly Prospective C13 and C14 carbonate zones remain untested above the C17 section, and are the main producing zones in the nearby Rubelsanto Field - produced over 30 mmbbl to date from 8 wells, 17km from Atzam Field; and
- Operator advanced with Atzam #5 development well design and location - to be drilled in 2013.
Range has an indirect attributable interest of 23.93% in the Atzam project, consisting of a 19.9% interest in Citation and a further 10% interest in the project.
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