Quetzal Energy Ltd.

Quetzal Energy Ltd.

February 23, 2010 12:05 ET

Quetzal Energy Ltd. Announces the Spudding of the Atzam #3A Well in Atzam Field, Guatemala and Workover of Atzam #2

TORONTO, ONTARIO--(Marketwire - Feb. 23, 2010) - Quetzal Energy Ltd. (TSX VENTURE:QEI) is pleased to announce the spud of the Atzam #3A development well in Guatemala. The well is located approximately 500 meters east of the Atzam #2 well and has a planned total depth of 4,300 feet. Drilling is expected to take 30 days utilizing Quetzal's Darci #1 drilling rig. It is anticipated that the productive C-18 and C-19 intervals will be encountered approximately 50 feet structurally higher than in the Atzam #2 well.

The Atzam #2 well was drilled in 1993 by Basic Petroleum (Bahamas) Ltd. to a total depth of 4,307 feet and tested 1,386 stock tank barrels of 34° API oil per day on natural flow from the interval 3,914 to 4,136 feet of the Coban C-18 and C-19 as reported to Ministry of Energy and Mines, Guatemala. The Atzam #2 well also had shows of oil and gas in the shallower Cretaceous C-13, C-14, C-16 and C-17 zones.

Atzam #2 well also had shows of oil and gas in the shallower Cretaceous C-13, C-14, C-16 and C-17 zones.

The workover of Atzam #2 was completed on February 13, 2010 utilizing Quetzal's Wanda #1 workover rig and involved drilling out a cement plug from 3,968 to 4,018 feet. The well has been put back on production and is anticipated to stabilize at a rate in excess of 50 barrels of oil per day.

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 impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with oil and gas activities, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. 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 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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