(MENAFN - ProactiveInvestors - Australia) Citation Resources (ASX: CTR) has flowed oil and gas to surface after encountering encouraging oil and gas shows at its well in Guatemala and is now drilling ahead towards the primary targets.
The shows were intersected in the C 14 and C15 carbonates, including over 50 feet in C14, which will be tested with the primary reservoir zones once drilling is completed.
On the current drilling schedule, the primary C18 and C19 targets are expected to be intersected in 20-25 days.
Atzam-4 is being drilled on the same structure that flowed 1,200 barrels of oil per day during testing at the Atzam-2 well.
Citation, formerly known as Clean Global Energy, will spud the Atzam-5 well following completion of Atzam-4.
The Guatemalan Blocks on which Atzam-4 is located have current proved and probable reserves of 2.3 million barrels of oil
The company is also planning to raise up to A600,000 to fund its testing programs and related drilling activities at Atzam-4.
This will be achieved through a placement of 30 million shares priced at A0.02 each to sophisticated investors. These will come with a free attaching option exercisable at A0.04 each for every two shares subscribed for.