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Citation Resources Installs Production Testing Equipment At Atzam-5, To Resume Drilling Shortly

Citation Resources (ASX: CTR) has completed the installation of production testing equipment at its Atzam-5 oil well in Guatemala and is now preparing to recommence drilling.

The company had previously drilled the well to a depth of 1,250 feet and successfully set and cemented the first intermediate casing string.

This was a critical operational phase due to the complex limestone geology that is present down to this depth until the carbonate units are encountered.

Installation of the equipment will enable a more efficient commercial production testing program if a carbonate zone produces material flows to surface whilst being drilled through.

Analysis at well data produced indications of initial hydrocarbon shows at casing point.

While these shows are not material, they are encouraging signs that the well prognosis is on schedule.

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.

Citation also noted the Atzam-4 well continued to produce at about 170 barrels of oil per day whilst maintaining a flowing tubing pressure over 200 psi.

An initial independent report on the 6 foot producing C17 carbonate zone has increased the potential recoverable reserves to 325,000 barrels of oil.

Range Resources (ASX: RRS) has a 19.9% stake in Citation.

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