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  • Citation Resources Intersects Multiple Pay Zones At Atzam-5 Oil Well 0 comments
    Apr 23, 2014 8:03 PM

    Citation Resources' (ASX: CTR) Atzam-5 oil appraisal well in Guatemala is looking increasingly attractive after multiple potential pay zones were identified in primary and secondary targets drilled to date.

    Ongoing oil and gas shows to surface have been noted from drilling the C17 and initial C18 carbonates with preliminary log analysis showing high oil saturations of up to 88% and porosities up to 18%.

    Notably, this has also indicated highly fractured potential reservoir sections which normally provide assistance to oil and gas flow rates.

    Operator Latin American Resources, which is 60% owned by Citation, is currently running casing in the well, which was successfully drilled to its second casing point at 3,608 feet to the top of the primary C18 carbonate section.

    The Atzam-5 log dataset down to 3,608 feet will be independently reviewed and analysed by Schlumberger at its head office in Mexico, with final results expected to coincide with the completion of drilling the lower section of the well.

    The true structural extent and volumetrics of the Atzam Oil Field will be clearly defined through a 3D seismic survey that is planned for 2014 as one of the key projects to follow the drilling of Atzam-5.

    Atzam-5

    Atzam-5, located about 1.2 kilometres 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 also intersected the C17 carbonate reservoir that is currently producing at Atzam-4.

    Results to date from Atzam-5 indicate the carbonate sections it has intersected are effectively at the same depth on structure to Atzam-4.

    With Atzam-4 previously expected to be sitting on the crest of the Atzam structure, the reservoir structure depth profile for Atzam-5 is potentially very significant for its commercial prospectivity as well as an upgrade for the in place oil resource estimate for the Atzam Oil field.

    Atzam-4 currently produces 170 barrels of oil per day though LAR is planning to further open the choke to increase production.

    Citation had previously noted oil flow to surface from the C17 reservoir and recorded material oil shows while drilling through the C15 -C17 carbonates.

    Analysis

    The results from Citation Resources' Atzam-5 appraisal well continue to be positive and there are early indications that it may be a commercial producer that could take the company to its targeted production rate of more than 600b barrels of oil per day.

    The road ahead now includes drilling the well towards its planned depth of 4,100 feet and intersecting the primary target C18 and C19 carbonate reservoirs.

    Results from these reservoirs as well as the independent review and analysis of the log dataset down to 3,608 feet by Schlumberger are likely to be closely watched as they will undoubtedly provide a clearer understanding of the well's potential.

    These are key catalysts to lifting the company's share price.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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