TIDMCAZA
RNS Number : 7975M
Caza Oil & Gas, Inc.
21 July 2014
July 21, 2014
Caza Oil & Gas, Inc.
CAZA OIL & GAS ANNOUNCES EXCELLENT WELL RESULT
AND PROVIDES OPERATIONAL UPDATE
HOUSTON, TEXAS (Marketwire - July 21, 2014) - Caza Oil &
Gas, Inc. ("Caza" or the "Company") (TSX: CAZ) (AIM: CAZA) is
pleased to announce another excellent result for the second 3(rd)
Bone Spring well drilled on its West Copperline Property, and to
provide an update on drilling activities at Gramma Ridge and
Broadcaster (West Copperline) properties, all of which are located
in Lea County, New Mexico.
West Copperline Property: The West Copperline 29 Fed #4H
horizontal Bone Spring development well (the "4H well") reached the
intended total measured depth of approximately 16,015 feet in the
3(rd) Bone Spring Sand interval and was subsequently fracture
stimulated beginning on July 1, 2014. Under controlled flowback the
producing rates have remained steady, and the well produced at a
peak 24 hour gross rate of 1,598 barrels (bbls) of oil equivalent,
which consists of 1,220 bbls of oil and 2.27 million cubic feet of
natural gas on July 16, 2014. The well continues to clean up and is
producing on a 24/64ths adjustable choke at 2,650 pounds per square
inch flowing tubing pressure. Facilities are already in place for
the sale of oil and natural gas on the property.
Caza is now producing four wells on this property on two
contiguous 160 acre tracts comprising the west half of Section 29.
The West Copperline 29 Fed #1H and #2H wells are producing from the
2(nd) Bone Spring Sand, and the West Copperline 29 Fed #3H and #4H
wells are producing from the 3(rd) Bone Spring Sand. All four are
very strong wells and demonstrate the significant upside provided
by stacked pay sands in the Bone Spring Play. There are still two
remaining 160 acre tracts to be developed at West Copperline in the
east half of Section 29. The wells on the east half will be
operated by a third party and called the Broadcaster wells.
Notwithstanding production from the 2(nd) and 3(rd) Bone Spring
Sand intervals in the West Copperline wells, log and core data were
also obtained across the Brushy Canyon, Avalon and 1(st) Bone
Spring Sand intervals in these wells. The data indicates the
presence of oil and natural gas across each of these intervals,
which is favorable for future development on the property,
including the non-operated Broadcaster wells in the east half of
the section. Management believes the deeper Wolfcamp formation on
the property is also prospective for oil and natural gas.
Caza currently has a 62.5% working interest (approximate 47.69%
net revenue interest) in the West Copperline wells.
Broadcaster Property (West Copperline non-operated): The
Broadcaster 29 Fed #3H horizontal 3(rd) Bone Spring development
well, is currently drilling ahead in the vertical section at
approximately 10,800 feet. The operator is preparing to begin
drilling the lateral section to a total measured depth of
approximately 15,824 feet in the 3(rd) Bone Spring Sand interval.
This well is a direct offset to the Company's operated West
Copperline Fed 29 #1H and #3H wells, which have each delivered very
strong results.
Caza currently has a 25% working interest (17.63% Net Revenue
Interest) in the Broadcaster Fed 29 #3H well and in the east half
of Section 29 containing approximately 320 acres.
Gramma Ridge Property: The Gramma Ridge 27 State #2H horizontal
Bone Spring test well (the "27-2H well") reached the intended total
measured depth of approximately 14,650 feet in the 2nd Bone Spring
Sand interval on July 12, 2014. The 27-2H well reached total
measured depth six days ahead of schedule and is scheduled to be
fracture stimulated beginning on July 27, 2014. This well is a
direct offset to the Company's highly successful Gramma Ridge 27
State #1H well (the "27-1H well"), which is currently producing
from the 3(rd) Bone Spring Sand. Encouraging results from log and
core data obtained from the 2(nd) Bone Spring Sand interval in the
27-1H well were determining factors in the decision to drill and
test the 2(nd) Bone Spring Sand in the 27-2H well, which also
exhibited favorable results from log and core data obtained across
the 2(nd) Bone Spring Sand interval.
Caza currently has a 52.5% working interest (approximate 40.82%
net revenue interest) in the Gramma Ridge 27 #1H and 27 #2H
wells.
W. Michael Ford, Chief Executive Officer commented:
"This is another excellent result at West Copperline and
continues the Company's success in the Bone Spring Play. As we
drill additional wells in the play, we continue to refine our
operations. This has resulted in efficiencies that have allowed us
to drill wells faster and cheaper, which improves the economics of
each well. We have also begun to tailor our fracs to fit specific
reservoir characteristics with improved results. These subtle
changes continue to increase our success and cost efficiency in the
play, which creates additional value for the Company and our
shareholders.
We're also happy to have reached total measured depth on the
operated Gramma Ridge 27-2H well ahead of schedule and to be
participating in the first Broadcaster development well offsetting
Caza's West Copperline wells. We look forward to updating the
market in the coming weeks once these wells have been
completed."
About Caza
Caza is engaged in the acquisition, exploration, development and
production of hydrocarbons in the following regions of the United
States of America through its subsidiary, Caza Petroleum, Inc.:
Permian Basin (West Texas and Southeast New Mexico) and Texas and
Louisiana Gulf Coast (on-shore).
For further information, please contact:
Caza Oil & Gas, Inc.
Michael Ford, CEO +1 432 682 7424
John McGoldrick, Chairman +65 9731 7471 (Singapore)
Cenkos Securities plc
Beth McKiernan +44 131 220 9778 (Edinburgh)
Neil McDonald +44 131 220 6939 (Edinburgh)
VIGO Communications
Chris McMahon +44 20 7016 9570
The Toronto Stock Exchange has neither approved nor disapproved
the information contained herein.
In accordance with AIM Rules - Guidance Note for Mining, Oil and
Gas Companies, the information contained in this announcement has
been reviewed and approved by Anthony B. Sam, Vice President
Operations of Caza who is a Petroleum Engineer and a member of The
Society of Petroleum Engineers.
ADVISORY STATEMENT
Information in this news release that is not current or
historical factual information may constitute forward-looking
information within the meaning of securities laws. Such information
is often, but not always, identified by the use of words such as
"seek", "anticipate", "plan", "schedule", "continue", "estimate",
"expect", "excellent", "may", "will", "hope", "project", "predict",
"potential", "intend", "could", "might", "should", "believe",
"develop", "test", "anticipation", "looks to be", "similar
results", "suggests" and similar expressions. In particular,
information regarding timing, success of, and information to be
obtained from drilling or completion operations and potential pay
zones contained in this news release constitutes forward-looking
information within the meaning of securities laws.
Implicit in this information, are assumptions regarding the
success and timing of drilling operations, rig availability,
projected production, projected revenue and expenses and well
performance. These assumptions, although considered reasonable by
the Company at the time of preparation, may prove to be incorrect.
Readers are cautioned that actual future operations, operating
results and economic performance of the Company are subject to a
number of risks and uncertainties, including general economic,
market and business conditions, well performance and operating
risks and could differ materially from what is currently expected
as set out above. The West Copperline 29 Fed #4H horizontal Bone
Spring well is in early stages of production. Future flow rates may
vary, perhaps materially, and the tests disclosed herein are not
necessarily indicative of long-term performance or of ultimate
recovery.
For more exhaustive information on these risks and uncertainties
you should refer to the Company's most recently filed annual
information form which is available at www.sedar.com and the
Company's website at www.cazapetro.com. You should not place undue
importance on forward-looking information and should not rely upon
this information as of any other date. While we may elect to, we
are under no obligation and do not undertake to update this
information at any particular time except as may be required by
securities laws.
Boe or barrel of oil equivalent may be misleading, particularly
if used in isolation. A boe conversion of six thousand cubic feet:
1 barrel is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a
value equivalency at the well head.
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLKKLBFZDFFBBF
Caza Oil & Gas (LSE:CAZA)
Historical Stock Chart
From Nov 2024 to Dec 2024
Caza Oil & Gas (LSE:CAZA)
Historical Stock Chart
From Dec 2023 to Dec 2024
