Citation established a presence in the Rocky Mountains in the late 1980's with its acquisition of properties from Tenneco and Mobil located in Utah, Wyoming and the four corners area of New Mexico. In 1995, Citation became a significant operator in the Rockies with the purchase of Apache Corporation's Rocky Mountain assets. Citation has continued to purchase assets in the region, including acquisitions from Hunt Oil Company, PITCO, Meritage, and Journey. Citation operates primary and secondary recovery projects in Wyoming, Montana, North Dakota and South Dakota. Citation is currently the eighth largest oil producer in the state of Wyoming.
In addition to its oil operations, Citation is very active in the coalbed methane (CBM) gas play in Campbell County, Wyoming. From 2004-9, Citation completed a 150 well drilling program to develop CBM resources in its Triangle U Unit, just south of Gillette. Citation has additional CBM acreage under various stages of development.
Citation's Rocky Mountain Region office is located in Gillette, Wyoming.
Bakken/Three Forks
During 2009 and early 2010, Citation participated in the drilling of five Bakken/Three Forks wells in North Dakota. Citation owns approximately 41,000 net acres and 14,000 net acres in the Bakken/Three Forks trend in North Dakota and Montana, respectively, that are held by production. Initial production rates exceeding 2,000 Bopd have been recorded in Citation interest Bakken/Three Forks wells and significant drilling capital is planned for 2010 and future years in this emerging resource play. These horizontal wells are expected to recover in excess of 500 MBOE per well. New drilling and completion technology continues to improve the economics of this play through decreased 1,280-acre spaced well costs and multi-stage fracture stimulations involving 20-30 frac stages per completion.
Bowes
The Bowes Field, which was acquired from Apache in 1995, is located in northern Montana on the north flank of the Bear Paw uplift and includes oil productive reservoirs of the Jurassic Sawtooth formation as well as shallow gas productive reservoirs within the Cretaceous Eagle sandstone formation. Oil production is unitized under the Citation operated Bowes Sawtooth Unit (BSU), while Eagle gas production is on a lease basis. The BSU was producing 140 Bopd prior to Citation beginning a horizontal drilling program on the southern and eastern flanks of the unit in the second and third quarters of 2007. Citation drilled three additional horizontal Sawtooth wells in 2008 and two more in 2009, all as a follow-up to the successful 2007 drilling program. The nine well drilling program increased BSU's oil production to over 600 Bopd from 27 wells. In addition to continued development with additional horizontal drilling, Citation has implemented a pressure maintenance program to build reservoir pressure in depleted areas of the field to enhance recovery and allow for future horizontal drilling in these areas.
Little Buffalo Basin
The Little Buffalo Basin and Northwest Dome properties are situated in the Big Horn Basin on the Hot Springs County and Park County, Wyoming line. The town of Meeteetse is located approximately six miles north of the field. The field is a classic breached anticlinal feature that produces oil under a secondary waterflood recovery process primarily from the Permian Phosphoria (Embar) and Pennsylvanian Tensleep formations at depths of 4,500' and 4,750', respectively. The property was acquired from Apache Corporation in 1995 as part of their Rocky Mountain regional exit. Gas production occurs from the shallower Muddy and Frontier sands. Current gross production is 1,365 Bopd and 935 Mcfd (455 Mcfd sales) from 98 active oil and gas producers and 69 water injection wells. Recent development activity has focused on higher oil cut Embar recompletions, Tensleep fracture stimulations and Tensleep/Embar reactivations throughout the 35 square mile complex.
Little Knife
Located in the southern portion of the Williston Basin of North Dakota and part of the 1995 Apache acquisition, Little Knife Field produces approximately 990 Bopd and 2,730 Mcfd from four active company operated and 61 Petro-Hunt operated wells. The major reservoir is the Mission Canyon formation encountered at a depth of 9,700'. Tracker Resources, Petro-Hunt, Continental Resources and BTA have been recently active in drilling horizontal Bakken producers in the area. Citation expects future development of its significant company-owned Bakken acreage in this area of the Williston Basin.
Notches Dome
Notches Dome was acquired by Citation as part of its Hunt Petroleum acquisition in 2001. The field is situated in the northern flank of the Casper Arch in Natrona County, Wyoming. This oil field was discovered in 1923 and produces from the Pennsylvannia Tensleep formation, which is an active water drive reservoir encountered at an average depth of 2,800'. There are currently 17 active producers in the field and gross production averages 410 Bopd and 83,700 Bwpd. Future plans currently being evaluated to optimize recovery and profitability focus on reducing water production of high fluid volume producers, maximizing pay exposure in select wells and drilling infill replacement wells.
South Casper Creek
At the end of 2005, Citation was successful in purchasing the interest of Meritage Energy in numerous properties situated predominantly in the Wind River and Powder River Basins of Wyoming. South Casper Creek is located on the east flank of the Wind River Basin in Natrona County and produces 300 Bopd from 57 producers in the Tensleep Formation at a depth of 2,500'. This 100% WI field contains significant upside to recover tertiary reserves through thermal recovery methods. Facilities and infrastructure were in place at the time of acquisition to exploit the Tensleep in the South Dome area based upon the success of a pilot steam flood program that was in place from 1981 through 1985 and later expanded from 1988 through 1992. In 2009, Citation re-initiated a pilot steam flood targeting a pattern of wells at South Casper Creek and is currently experiencing production and bottomhole temperature increases in many of the wells in the steam flood pattern.
Triangle U
The Triangle U Field is part of the 1995 Apache acquisition and is located in the southern portion of the Powder River Basin. Initially, production was only from the Sussex formation at a depth of 8,400'. Two horizontal wells were drilled by Citation to complete the Sussex development. The field currently produces 40 Bopd from five active producers. Initial offset activity and intensive reservoir study by Citation identified the shallower Big George Coal Seam at a depth of 1,100' as a source for the development of over 40 Bfcg of reserves from 160 locations. From 2004-9, Citation drilled 150 Big George CBM wells in its Triangle CBM Unit. After an initial period of dewatering, first gas sales occurred in September 2004. Current gas sales are approximately 14,500 Mcfd.
| Net Proved Reserves | 39 MMBbls 45 Bcf |
| Net Production |
6,100 Bopd 16,900 Mcfd |
| Active Wells | 1,560 |
| Employees | 54 |