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  • Citation Resources Has Big Oil Potential In Guatemala 0 comments
    Jun 17, 2014 9:20 PM

    Citation Resources (ASX:CTR) has completed electric log analysis that shows potential net pay in excess of 200 feet across all carbonate zones at its Atzam-5 oil appraisal well in Guatemala.

    It is also continuing the first phase of flow testing operations on the lower C18 carbonates that generated significant oil shows to surface whilst drilling.

    Further flow testing may include testing potential pay zones from the C13 to C18 carbonates as prioritised by the log evaluation to establish a strong commercial flow rate from the well.

    This is further indication of the upside potential of the Atzam Oil Field.

    Atzam-5

    The electric log analysis by Schlumberger shows potential net pay in excess of 200 feet across all carbonate zones in the well, with multiple zones demonstrating high gas saturations and porosity.

    This analysis, combined with the significant oil shows from multiple zones whilst drilling, detail the commercial potential in the well from the C13 carbonates down to the lower C18 carbonate structures drilled.

    It also confirms that Atzam-5 has very similar reservoir characteristics to the producing Atzam-4 well and helps confirm the extension of multiple carbonate reservoir sections across the Atzam structure drilled to date.

    The full Schlumberger log dataset and associated drilling reports have been provided to the independent reservoir consultants Ralph Davis, who are currently preparing a detailed reserve report for Atzam-5.

    Preparations are underway to perforate the lower C18 carbonate section to carry out flow testing.

    Due to the well intersecting a major salt plug between the lower C18 and C19 carbonates, cement plugs were recently laid in the base of the well to seal off the salt lens.

    As the C19 carbonates in Atzam-5 are located below the cement plugs, this section will be tested from a different location as part of the ongoing development of the Atzam Field.

    Atzam-5 is a step out well located about 1.2 kilometres from the producing Atzam-4 well to intersect the C18 and C19 carbonate reservoirs that produced strong oil shows in Atzam-4 but were unable to be flow tested.

    It is 66 feet high on structure to the Atzam-4 well and approximately 320 feet high to the Atzam-2 well, raising the potential for a significant increase in the commercial prospectivity of Atzam-5 and the in place oil resource estimate for the Atzam Oil Field.

    Atzam-2 had recorded initial flow rates of in excess of 1,000 barrels of oil per day from the primary C18/19 carbonate sections.

    Analysis

    The Atzam-5 log results showing net pay in excess of 200 feet is indicative of a significant increase in its commercial prospectivity for Citation Resources.

    With flow testing operations underway on the lower C18 carbonates, the company will soon be able to confirm this potential.

    This is likely to be supported by further testing of other zones in the well.

    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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