Project Profile
Location: South Peten Basin, Guatemala
Reserves: 2.3 million barrels (Atzam-4 well only)
Production: 2,700 BOPD of 36°API oil
Drilling Depth: 4,500ft
In July 2012, Citation Resources Limited entered into an agreement to acquire an interest in two oil and gas development and exploration blocks in Guatemala (Projects) through a farm-in right to gain a 70% interest in Latin American Resources (LAR) which currently holds the two blocks. Block 1-2005 is located in the South Peten Basin in Guatemala. The Project has an established reserve base with significant exploration upside potential. In addition the block had significant previous exploration and an appraisal drilling program is currently underway. Previous operators prioritised their focus on other oil and gas opportunities in Latin America, leaving LAR to acquire the block and execute the previously developed production and exploration programs.
The first appraisal well, Atzam #4, spudded in late June 2012 and is currently drilling ahead to its target depth of 4,500ft. The intention is for the second well, Atzam #5, to spud following completion of a successful flow testing program on the Atzam #4 well. The producing formation is the C-17. The Atzam #2 well previously drilled had initial flow rates of 1,200 BOPD of 36°API oil at 4,000ft, before experiencing well integrity issues which led to new well designs for the proposed Atzam #4 well (successfully drilling at a current depth of 1,200ft) and the Atzam #5 well. An independent report by Ralph E Davis & Associates placed a probable reserve estimate on Atzam-4 of 2.3 million barrels using a 30% recovery factor and a 160-acre drainage area. The next well in the current drilling programme on Block 1-2005, Atzam-5, is expected to be spudded following the completion of the flow testing programme at Atzam-4.
In addition to the Atzam structures on Block 1-2005, the Tortugas structure is a suspended oil field. Originally 17 wells on Tortugas salt dome were drilled by Monsanto looking for sulphur. One well (T9B) had an oil blowout at approx 2,200 ft and most others had oil shows in multiples zones. Two oil wells flowed oil at initial rates over 1,500 BOPD, both wells suspended in the mid 80\'s. LAR plans include the re-entry and re-completion of the work-over on two Tortugas wells, 63-4 and 63-5, and facility upgrades.
Operator:
Latin American Resources (a subsidiary of Citation Resources Limited): Operator with 100% interest
Contractor:
Schlumberger: Providing specialist services on the well including the logging and cementing programs