Citation established a presence in Oklahoma in 1985 with its purchase of the Healdton II Unit, located west of Ardmore. Through the years, we have expanded our 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 one of Oklahoma's largest oil producers. Citation added to its significant position in southern Oklahoma with the acquisition of the Countyline and Wildhorse Units from Hyperion Resources Corp in 2004.
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.
Citation's Southern Oklahoma Region office is located in Oklahoma City, Oklahoma.
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 90 producing wells and 43 active injection wells. Current daily production is 525 Bopd and 1,400 Mcfd, primarily from the Deese and Springer sandstones. The Humphreys and Sims sandstones also are productive. The Deese and Flattop (Springer) intervals are currently under active waterflood.
Evaluation and reprocessing of an existing proprietary 3-D 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 3-D work led to six locations that were drilled in 2008 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 174 active producers and 40 water injection wells at Cement, and is producing 455 Bopd and 2,050 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 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 owns a 98.9% WI. Production is primarily from steeply tilted Pennsylvanian Deese sands at depths between 850’ to 2,000'. Citation operates 78 active producers and 18 active water injectors. In December 2005 the CPSU was averaging 185 Bopd, and is currently producing over 500 Bopd as a result of Citation’s waterflood development activity. We are currently converting four wells to injection wells and completing an additional six well drilling program that should combine to add nearly 150 Bopd of additional unit production. 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 680 Bopd and 250 Mcfd from 62 producing wells. A total of 33 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, along with its high permeability sequences provide a challenge to waterflood operations. Detailed evaluation of the Sims stratigraphy generated opportunities to modify the waterflood during 2009 and continuing into 2010 by converting additional wells to injection, returning wells to production, and augmenting water injection through additional source water supply. 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.
Eola
The Eola area is comprised of Eola, Eola Robberson, Eola NW and Eola SE fields, all contained within Garvin County, Oklahoma. Part of Citation’s Coho acquisition in June 2002, Eola produces from the Sycamore, Woodford, Hunton, Viola, and Simpson group in one of Oklahoma’s most geologically complex areas. Current production is 735 Bopd and 4,055 Mcfpd from 56 production wells, mostly solution gas drive reservoirs. While prior efforts in this area were focused on drilling wells partnered with Cimarex Energy on jointly controlled acreage, Citation’s current activity will be directed to drilling wells on higher working interest company-controlled acreage to exploit the Sycamore, Woodford, Hunton and Viola objectives.
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 163 active producers and 87 water injection wells. Citation produces 1,560 Bopd and 105 Mcfd from the Pennsylvanian Cromwell sand, the Siluro-Devonian Hunton and Ordovician Viola carbonates. Citation executed infill development programs at Fitts in 2003, 2006, 2008 and 2009, and is continuing to develop the field on five-acre spacing with eight additional wells drilled and completed in 2010.
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'. Total production from the 93 producing wells is 410 Bopd. In addition, there are 23 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 commenced activity in an active Hunton play, drilling three new wells during 2008 that targeted both the Hunton and Viola formations. These wells were extremely successful having produced at rates above 200 Boepd each. Due to the success of these wells, in the latter part of 2009 and early 2010, four additional Hunton/Viola wells were drilled and completed.
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 802 active producers and 341 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 its 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 expanded its polymer injection activity into the neighboring Dundee, Healdton V, and Third Healdton Sand units in 2008-10. 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 68 active producers and 30 active injectors. Total unit production is 340 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 waterflood 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 365 Bopd and 820 Mcfd from 66 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 305 Bopd from 31 producing wells supported by 22 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 commodity prices.
Sho-Vel-Tum
The Shoveltum Field is located in Carter and Stephens counties in southern Oklahoma, approximately 25 miles northwest of the town of Ardmore. Citation operates 12 leases and has interests 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 4,505 Bopd and 3,950 Mcfd from 968 producing wells. There are also 410 injection wells in the field. The largest non-operated property is the Velma Sims Sand Unit (operated by Chevron) that produces 840 Bopd and 670 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 465 Bopd from 114 producing wells. The Wildhorse Unit produces 230 Bopd from 61 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 Countyline Unit has proved very successful in this field during 2007 and 2008 and additional wells have been selected for this procedure in 2009-10.
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 254 producing wells in the area that combine to produce 2,155 Bopd. In addition, there are 93 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 167 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, 20 producers and injectors during 2006 and 16 producers and injectors in 2007 and 2008, resulting in an increase of over 500 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. We drilled 11 producers, 2 injectors and converted additional wells to injection during 2008, and drilled 7 additional producers in 2009. Up to 11 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 Sand Unit.
| Net Proved Reserves | 62 MMBbls 34 Bcf |
| Net Production |
8,400 Bopd 7,400 Mcfd |
| Active Wells | 4,315 |
| Employees | 99 |