(MENAFN- ProactiveInvestors - Australia) Citation Resources (ASX: CTR) has penned in a probable reserve of 2.3 million barrels of oil at its Atzam-4 well in Peru.
The reserve was estimated in an independent reserves report by Ralph E Davis and Associates (RED), which based it on logging and the analytical work completed by Schlumberger.
RED also found that there were up to 20 material oil shows in the Atzam-4 well and recommended 8 zones to be tested for commerciality.
Notably for Citation, the Lower C18 and C19 zones were not included in the report as they were washed out while drilling and the logging tool could not be used through this interval.
However, RED believes that hydrocarbons should be present in these zones and that they should be tested in the next well.
Preparations are continuing for the commencement of flow testing operations with an electric submersible pump on the perforated Lower C17 and Upper C18 carbonate sections.
Flow rate are expected to be between 300 and 400 barrels per day with an 85% to 90% oil cut.
The ESP should be on location and operational in about 3 weeks.
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