The company established a presence in Oklahoma in 1985 with the purchase of the Healdton II Unit, located west of Ardmore. Through the years, Citation has expanded its presence in southern Oklahoma with acquisitions from Mobil, Shell, Arco, Tenneco and Unocal. In 2002, Citation purchased a large number of Oklahoma assets from Coho Oil & Gas Inc. With the Coho purchase, Citation established itself as Oklahoma's largest oil producer. Citation added to its industry leading position in southern Oklahoma with the acquisition of the Countyline and Wildhorse Units from Hyperion Resources Corp.
Most of the fields located in the Southern Oklahoma Region are mature waterfloods once operated by major oil companies. Citation has established itself as the market leader in operating these types of assets, as evidenced by having twice been nominated as the "Operator of the Year" by the Oklahoma Corporation Commission.
The Citation Southern Oklahoma Region office is located in Oklahoma City, Oklahoma.
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Bumpass
The Bumpass Unit is situated in the larger Sho-Vel-Tum Field, which is located approximately 25 miles northwest of Ardmore, Oklahoma, in the Ardmore Basin. Citation acquired Bumpass as part of the Coho acquisition in June 2002. It consists of 3,600 gross acres with 81 producing wells and 42 active injection wells. Current daily production is 550 Bopd and 1,700 Mcfd, primarily from the Deese and Springer sandstones. The Humphreys and Sims sandstones also are productive. The Deese and Flat Top (Springer) intervals are currently under active waterflood.
Evaluation and reprocessing of an existing proprietary 3D Seismic survey has provided significant insight into the complex Flattop and Goodwin reservoirs as well as delineating deeper opportunities and clarifying the complex structural picture. The 3D work has led to a number of locations that will be drilled in 2008 and 2009 for the Springer series Flattop and Goodwin sands as well as for the Simms sands. In addition to the Springer drilling locations; detailed evaluation of the younger Deese Sandstones should yield opportunities to optimize waterflood performance.
Cement
The Cement Field is located in southeastern Caddo County, Oklahoma in and around the town of Cement. Citation purchased the properties from Mobil Oil Corporation in 1988. Cement Field was discovered in 1919 and development continues today. Citation's assets are composed of the East and West Cement Units and several non-unit producing leases. Production is from the unitized Permian - Hoxbar sandstone formations and several non-unitized Deese sand intervals. Citation operates 178 active producers and 43 water injection wells and is producing 510 Bopd and 2,700 Mcfd from the field. Although this is a very mature area, Citation continues to utilize detailed mapping and sound engineering practices to yield significant new reserves.
Cox Penn
The Cox Penn Sand Unit (CPSU) is part of the Sho-Vel-Tum Field, which is located 25 miles northwest of Ardmore, Oklahoma, in the Ardmore Basin. Citation acquired the CPSU from Coho Oil & Gas, Inc. in June 2002. The CPSU was discovered in 1926 and the Unit was formed in 1961. Citation operates all wells and has a 98.9% WI. Production is primarily from steeply tilted Pennsylvanian Deese sands at depths between 850 to 2000'. The Company is currently completing a two-and-a-half acre infill drilling program in order to optimize a waterflood in the 1st, 2nd, and 3rd Deese sands. Citation operates 71 active producers and 10 active water injectors. In December 2005 the CPSU was averaging 185 Bopd, and is currently producing over 550 Bopd as a result of this waterflood development activity. Significant upside production potential exists by steam flooding the 4th Deese Sand, which contains 14 degree API gravity crude.
East Velma
East Velma Field is situated in the Ardmore Basin approximately 20 miles northwest of Ardmore, Oklahoma. Part of the Coho acquisition made in June 2002, East Velma produces primarily from unitized Humphreys and Sims sandstone intervals found between 4,000' to 7,000'. These Springer units are active waterfloods which produce approximately 730 Bopd and 450 Mcfd from 69 producing wells. A total of 22 active injection wells support both the Humphreys and Sims sandstone. Production has increased significantly since Citation acquired this property.
The steep structural dip found at East Velma, resulting from an angular unconformity, and the high permeability sequences provide a challenge to waterflood operations. Detailed evaluation of the Sims stratigraphy has generated opportunities to modify the waterflood. Additional opportunities to increase the property value may be discovered following evaluations of the Deese, Aldridge, Sycamore, Hunton, and Simpson Formations. Citation's database of 3-D seismic and scanned log images will support the effort to develop this upside potential.
Fitts
The Fitts Field is located 20 miles southeast of Ada, Oklahoma in the southeast portion of Pontotoc County. Citation purchased the East Fitts Unit from Coho Oil & Gas, Inc. in June 2002. The field was discovered in the late 1930's and has grown to 144 active producers and 88 water injection wells. Citation produces 1,490 Bopd and 100 Mcfd from the Pennsylvanian Cromwell sand, the Siluro-Devonian Hunton and Ordovician Viola carbonates. Citation drilled additional infill development wells in late 2003 and 2006 and is evaluating an additional 60 development locations on five acre spacing.
Graham Deese
Citation operates the Graham Deese Unit (GDU) located in Carter County, Oklahoma approximately 25 miles northwest of Ardmore. Citation took over operations of the field in June 2002 as a result of the Coho acquisition. The GDU is a waterflood project that produces from Deese sands ranging in depths from 3,100' to 4,800'. The total production from the 90 producing wells is 440 Bopd. In addition, there are 20 injection wells in the unit. Citation has increased profitability from the GDU since the acquisition by optimizing artificial lift and returning inactive wells to production. Near the Graham Deese Unit, Citation is commencing activity in an active Hunton play and will drill three new wells for 2008 targeting both the Hunton and Viola formations.
Healdton
The Healdton Field complex is the company's largest reserve base and highest valued asset. It is located in the Ardmore Basin in southern Oklahoma's Carter County, approximately 20 miles west of the town of Ardmore. The field was discovered in 1913, and unitization for enhanced recovery waterflood operations began in 1968. Production is from a thick sequence of Pennsylvanian-aged Hoxbar sands at a depth of approximately 1,000'. There are over 800 active producers and 400 active injectors in the field's nine major units, resulting in a current production rate of over 2,300 Bopd. Citation operates all wells in the field with an average 91% WI. Due to the shallow depth and extensive infrastructure, the field is extremely profitable at water cuts significantly less than 1%. For these reasons, injection well polymer treatments have been very successful at altering the vertical sweep and flattening the annual declines of these units to less than 5%. Based upon the tremendous success of two phases of polymer treatments at the Healdton III Unit in 2007, Citation will be expanding its activity into the neighboring Dundee, Healdton V, and Third Healdton Sand units in 2008. These polymer treatments continue to positively alter the long term production and oil cut trends, with many of the units still exhibiting 40 years or more of remaining economic life.
North Alma Deese Unit
Citation operates the North Alma Deese Unit (NADU) in Carter County, Oklahoma, approximately 20 miles northwest of Ardmore. Citation took over operation of the field in June 2002 as part of the Coho acquisition. Mobil unitized the NADU in 1972 for the purpose of waterflooding the Deese sands from 3,100' to 4,800'. There are currently 58 active producers and 32 active injectors. Total unit production is 330 Bopd. Citation has increased profitability from the NADU since the acquisition by optimizing artificial lift and returning inactive wells to production. Inactive water injection wells are also being returned to injection to optimize the water flood for this field.
Sholem Alechem
The Sholem Alechem Field is located in Stephens County, Oklahoma approximately 30 miles northwest of the town of Ardmore. Production is from the Deese, Sims, Springer and Sycamore formations ranging in depth from 4,800' to 7,500'. Total production is 480 Bopd and 1,260 Mcfd from 139 producing wells. Citation operates 38 leases in the field with the largest being the Sholem Alechem Fault Block A Unit (SAFBAU), a waterflood project in the Sims sand. The SAFBAU produces 340 Bopd from 63 producing wells. There are also 20 active water injection wells in the unit. Recent activity has focused on reactivating prior shut-in producers and injectors that are highly economic at current community prices. This year the unit will also see a round of procedures where we'll open additional pay that was overlooked when the wells were first completed in the Simms sands.
Sho-Vel-Tum
The Shoveltum Field is located in Carter and Stephens County in southern Oklahoma approximately 25 miles northwest of the town of Ardmore. Citation operates 12 leases and has interest in 46 non-operated leases in the field. The majority of the production is from the Deese, Sycamore and Springer formations ranging in depth from 1,700' to 8,000'. Total gross production in the field is 5,085 Bopd and 6,360 Mcfd from 1,263 producing wells. There are also 586 injection wells in the field. The largest non-operated property is the Velma Sims Sand Unit (operated by Texaco) that produces 860 Bopd and 940 Mcfd. The largest Citation operated properties are the Countyline and Wildhorse Units. Citation took over operations of these secondary recovery projects in April 2004 as a result of the Hyperion acquisition. The Countyline Unit produces 690 Bopd from 128 producing wells. The Wildhorse Unit produces 340 Bopd from 68 producing wells. A 3-D seismic survey has been acquired across the two units and is being evaluated for infill drilling potential. Opening up additional pay in the County Line Unit has proved very successful in this field during 2007 and additional wells have been selected for this procedure in 2008.
Tatums, Tatums NW & SE Fields
Citation is the operator of the Tatums Field complex located in Carter County, Oklahoma, approximately 20 miles northwest of the town of Ardmore. There are 220 producing wells in the area that combine to produce 1,800 Bopd. In addition, there are 84 water injection wells in the field. The Tatums Field Unit (TFU) was discovered in 1927 and has been under secondary recovery operations since the early 1960's. Production is from Deese sands that range in depth from 2,500' to 3,000'. Citation took over operations of the TFU in June 2002 as part of the Coho acquisition. The TFU produces 1,700 Bopd from 150 producing wells. In 2004 a 7-1/2 square mile 3-D seismic survey was acquired and processed across the field. Citation drilled 10 producers at TFU during 2005 and 20 producers and injectors during 2006 resulting in an increase of over 400 Bopd. Additional five-acre infill locations have been identified and will be selectively developed in the coming years.
At nearby SE Tatums, Citation has received approval to unitize and waterflood the oil productive Deese sands. The company has plans to drill four producers, two injectors and convert additional wells to injection. Up to 20 additional infill locations exist to complete the 2-1/2 acre spaced waterflood. SE Tatums is located immediately south of the Citation operated Cox Penn Unit.
| Net Proved Reserves | 59 MMBbls 35 Bcf |
| Net Production |
7,700 Bopd 6,600 Mcfd |
| Active Wells | 4,300 |
| Employees | 100 |