The Atzam-4 well in Guatemala continues to perform well, producing 13,227 barrels of oil in the March 2014 quarter.
Notably, recent downhole reservoir pressure testing data of the producing C17 reservoir has recorded shut in downhole pressure in excess of 500 psi, only slightly lower than reservoir pressure recorded on perforating this section in June 2013.
This led to an increase in potential recoverable reserves in the 6 foot producing zone to 325,000 barrels of oil.
Atzam-4 continues to produce at about 170 barrels of oil per day from natural reservoir pressure without the need for a submersible pump to assist flow rates.
Operator Latin American Resources, which is 60% owned by Citation, plans to continue increasing the choke over a period of time to establish the optimal production rate for this producing carbonate section.
Work is also ongoing to start flow testing of the Atzam-5 oil appraisal well.
Progress is also being made on operational plans to commence the two initial well re-entries on the Tortugas Salt Dome structure during 2014.
Successful well re-entries on the 63-4 and 63-5 wells are expected to produce between 200-300 bopd each of high quality 34°API oil based on historical flow rates and production profiles.
Two wells had flowed at initial rates of over 1,500bopd in the mid 80s but were subsequently suspended.
The Tortugas Salt Dome structure is a suspended oil field, with Monsanto having drilled 17 wells on the structure including wells for both sulphur and oil.
Receipts for the quarter were $1.06 million with Citation holding $2.5 million in cash as of 31 March 2014.
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