OilVoice - Quetzal Energy Spuds Atzam #3 Well in Atzam Field, Guatemala

Quetzal Energy Spuds Atzam #3 Well in Atzam Field, Guatemala

Sunday, June 28, 2009

Quetzal Energy Ltd. announce that the Atzam #3 well has been spudded with a targeted total depth of 4,200 feet and located approximately 500 meters east of the productive Atzam #2 well.

The Atzam #2 was drilled in 1993 by Basic Petroleum (Bahamas) Ltd. to a total depth of 4,307 feet. Ten extensive formation tests were run on the #2 well that included tests in the Cretaceous Coban C-18 and C-19 after drilling. The Atzam #2 well also had shows of oil and gas in the shallower Cretaceous C-13, C-14 and C-17 zones.

The initial formation test by Basic Petroleum run on 8 and 9 April of 1993 at the base of the Coban C-18 and Coban C-19 from 3,914 to 4,136 feet tested on natural flow at 1,386 stock tank barrels (STB) of 34° API oil with a gas to oil ratio of 547 standard cubic feet per day per stock tank barrel of oil (SCF/STB), as per Basic Petroleum (Bahamas) Ltd. final well report submitted to the Ministry of Energy and Mines, Guatemala.

The currently producing Atzam #2 well has produced a cumulative of 102,168 STB since the date of first production to May 31st, 2009 as per Basic Petroleum (Bahamas) Ltd. and Quetzal’s production records.

Quetzal’s technical personnel have chosen the location of the Atzam #3 well approximately 500 meters offset from the Atzam #2 well after careful evaluation of all available technical data on the field and hope to gain a structural advantage to the Atzam #2 at the productive C-18 and C-19 intervals in the Atzam #3.

Drilling is expected to take between 26 and 32 days.

Quetzal has also successfully completed the Atzam #1A as a water disposal well. The conversion will result in a current monthly savings to Quetzal of $18,000 per month.