Citation Resources Limited is pleased to advise that the Russel Bevly #2 well has successfully drilled ahead to its first casing point at 2,145ft, and casing is now being run in the hole. A 30-day drilling program anticipated by the Operator (Ventex Operating Corp.), with the Howell Hight priority sandstone reservoir formation anticipated to be intersected at approximately 13,500 ft.

The Russell Bevly #2 is an infill appraisal well with a target depth of 14,250 feet (appox 4,350m) and is located between the successful Smith #1 and Russell Bevly # 1 wells that previously achieved combined production rates of 9.3 MMCf & 800 bbl of oil per day following successful well stimulation. Citation has already pre-paid in full its share of the dry hole AFE costs (US$613,000) to the Operator for the Russel Bevly #2 appraisal well on the North Chapman Ranch project.

Texas Oil and Gas Projects

The North Chapman Ranch Project (Citation acquired 18.2% WI ) is located in Nueces County, Texas, comprising approximately 1,680 acres.

Following the commercial discovery of the Smith #1 well in December 2009, a multi well program was initiated that saw 4 appraisal / development wells drilled across the license area, with the latest well, the Albrecht #2 well, being drilled during the 2013/14 year, to determine the south-eastern extension of the Howell Hight sandstone reservoirs. Whilst the well encountered the HH at the predicted depth, it did not flow at a commercial rate after completion.

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