California: Citadel works San Joaquin, Salinas oil projects

Citadel Exploration Inc., Newport Beach, Calif., said the Yowlumne 2-26 recompletion well in southwestern Kern County, Calif., is testing 34.5° gravity oil with associated gas at undetermined rates as the company’s first official oil production.

Drilled in 2008 under supervision of Citadel Chief Executive Officer Armen Nahabedian on 3,000 acres acquired earlier this year, the well then tested oil and has been idle for 5 years due to lease issues.

Citadel installed a 10,000 psi production tree as the 100% interest well had shut-in pressures exceeding 500 psi with fluid to surface. The productive zones are behind slotted liner at 12,500 ft.

Flow tests have recovered 100 bbl of oil during the last week, and a service rig is being moved in to better determine rates of entry, possible pump sizes, or potential necessity for stimulation. A tank battery has been installed.

Meanwhile, Citadel received the final state permit for the first well at its 60% interest Project Indian in the southern Salinas-Half Moon basin. The company estimates 100-200 million bbl of oil in place.

Drilling is to begin in the current quarter, and the company plans to inject steam to mobilize shallow, 13° gravity oil from the well in San Benito County just south of Soledad. Chevron discovered the accumulation, analogous to North San Ardo field, in 1950.

Also, Citadel signed a nonbinding letter of intent with its partner under which Citadel will become the sole working interest owner of a 55-acre block in the Pastoria Creek area of Rancho Grande, southeast of Bakersfield, where Citadel expects to spud a well within 60 days.

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