Citation Resources Spuds Atzam-5 Development Well In Guatemala

Jan. 15, 2014 12:31 AM ET

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Citation Resources (ASX: CTR) has spudded the Atzam-5 development well in Guatemala that could allow it to meet its targeted production rate of more than 600 barrels of oil per day.

Operator Latin American Resources, which is 60% owned by Citation, expects to take about 40 days on a trouble free basis to drill the well to a planned depth of 4,100 feet.

Atzam-5 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.

Atzam-4

Citation has also increased production at its Atzam-4 well to 150 barrels per day from the previous 110 to 120bpd.

This follows the company increasing the choke in the well after recent reservoir pressure testing and an independent review of the C17 reservoir production profile to date.

Atzam-4 continues to produce from natural reservoir pressure without any water production.

LAR will monitor the production profile at this new setting before opening the choke further.

Independent reservoir engineers Ralph Davis have advised that the well could be produced at an optimal production rate of 466bpd, whilst maintaining the reservoir's structure and integrity.

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