Guatemala: Quetzal ends spinout, reworks Atzam-2
Quetzal Energy Ltd., Calgary, elected not to spin out its Guatemalan assets to its shareholders through the creation of a separate public company.
By OGJ editors
HOUSTON, July 21 – Quetzal Energy Ltd., Calgary, elected not to spin out its Guatemalan assets to its shareholders through the creation of a separate public company. The board will review several strategic alternatives to maximize shareholder value of the Guatemalan assets.
The company also withdrew its request to approve Quetzal's stock option plan due to a lack of shareholder support. The board will examine compensation alternatives that will enable Quetzal to continue to attract, retain, and motivate highly talented employees.
Meanwhile, Quetzal reworked the Atzam-2 well, which is producing 40 b/d of 32° gravity oil and 420 b/d of water. The oil is trucked to Guatemala City and sold to end-users who blend it with refined products and use the blend to fire furnaces or power diesel engines.
The company recently sold loads of oil at prices in excess of West Texas Intermediate plus $20/bbl. The water is transported by pipeline and injected into the Atzam-1 water disposal well at minimum cost.