Quetzal Energy Ltd.
TSX VENTURE : QEI

Quetzal Energy Ltd.

June 25, 2009 10:12 ET

Quetzal Energy Ltd. Announces the Spudding of the Atzam #3 Well in Atzam Field, Guatemala

TORONTO, ONTARIO--(Marketwire - June 25, 2009) - Quetzal Energy Ltd. (TSX VENTURE:QEI) is pleased to announce that the Atzam #3 well has been spudded with a targeted total depth of 4,200 feet and located approximately 500 meters east of the productive Atzam #2 well.

The Atzam #2 was drilled in 1993 by Basic Petroleum (Bahamas) Ltd. to a total depth of 4,307 feet.  Ten extensive formation tests were run on the #2 well that included tests in the Cretaceous Coban C-18 and C-19 after drilling.  The Atzam #2 well also had shows of oil and gas in the shallower Cretaceous C-13, C-14 and C-17 zones.

The initial formation test by Basic Petroleum run on 8 and 9 April of 1993 at the base of the Coban C-18 and Coban C-19 from 3,914 to 4,136 feet tested on natural flow at 1,386 stock tank barrels (STB) of 34° API oil with a gas to oil ratio of 547 standard cubic feet per day per stock tank barrel of oil (SCF/STB), as per Basic Petroleum (Bahamas) Ltd. final well report submitted to the Ministry of Energy and Mines, Guatemala.

The currently producing Atzam #2 well has produced a cumulative of 102,168 STB since the date of first production to May 31st , 2009 as per Basic Petroleum (Bahamas) Ltd. and Quetzal's production records.

Quetzal's technical personnel have chosen the location of the Atzam #3 well approximately 500 meters offset from the Atzam #2 well after careful evaluation of all available technical data on the field and hope to gain a structural advantage to the Atzam #2 at the productive C-18 and C-19 intervals in the Atzam #3. 

Drilling is expected to take between 26 and 32 days.

Quetzal has also successfully completed the Atzam #1A as a water disposal well.  The conversion will result in a current monthly savings to Quetzal of $18,000 per month.

Quetzal will be issuing updates as significant events in the drilling occur.

Forward-Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Quetzal, including, but not limited to, the ability to complete the Atzam #3 well on target and on budget, the timely cost of drilling, the impact of general economic conditions, industry conditions, dependence upon regulatory and shareholder approvals, the execution of definitive documentation and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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