Ann: Atzam 4 - Project Update , page-2

Citation Resources to bring Guatemala oil well into production within days
Monday, June 17, 2013 by Bevis Yeo


Citation Resources to bring Guatemala oil well into production within days

Citation Resources (ASX: CTR) plans to start commercial oil production from its Atzam-4 oil well in Guatemala after successfully carrying out a production and reservoir pressure testing program.

Pressure testing operations will continue for another 3-4 days, with the well then to be immediately turned to production.

Construction of additional on-site production and storage facilities is underway in preparation of the well commencing its production operations.

Negotiations are currently underway between the operator Latin American Resources and a number of parties for the immediate and long term oil commercial production from Atzam-4.

Citation added the well could flow at higher rates with a larger choke size, and the optimal production flow rate will be determined on completion of the current testing and evaluation program.

During the 10 day testing period, strong well head pressures were maintained during testing with oil production continuing between 250 and 600 barrels per day on restricted choke sizes when flowing between shut-ins for pressure testing.

No water cut has been produced to date while the oil quality has improved over the past week with samples assaying 36 to 37 degrees API oil.

This has improved the company’s assessment of the well’s immediate commercial potential and reservoir quality.

The initial oil production of a 610bpd average rate over a 24 hour period post perforation without acid wash of the section was considered a strong indication of the commercial potential of the well, and likely to increase the recoverable resource volumetrics for the Atzam Field.

Atzam-4 is currently estimated to host Probable Reserves of 2.3 million barrels of oil.

Citation has a 70% interest in Latin American.



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