Citadel Exploration Inc. announced that it has received a permit from the California Department of Oil, Gas & Geothermal Resources to commence thermal recovery at Project Indian using Cyclic Steam Injection. This permit was the final permit required for COIL to commence injection and production of the Indian #1-15 well, which was successfully drilled in early January. Steam injection is expected to start in the coming weeks.

This well is the first in a 15-well pilot program to receive steam injection and will help determine the economic viability of the field. Approximately 60% of California oil production is accomplished with thermal recovery, a process that does not involve any chemical injection. Typical thermal recovery projects in California have recovered 20% to 60% of the original oil in place, suggesting that Project Indian could ultimately recover between 20MM and 60MM barrels of oil.