TIDMCAZA
RNS Number : 8252C
Caza Oil & Gas, Inc.
08 May 2012
May 8, 2012
Caza Oil & Gas, Inc.
CAZA OIL & GAS PROVIDES OPERATIONAL UPDATE
HOUSTON, TEXAS (Marketwire - May 8, 2012) - Caza Oil & Gas,
Inc. ("Caza" or the "Company") (TSX: CAZ) (AIM: CAZA) is pleased to
provide an operational update on the Company's drilling activities
in southeast New Mexico.
Bradley 29 Prospect, Eddy County, New Mexico. Caza recently
completed an acreage swap with Mewbourne Oil Company ("Mewbourne"),
whereby Caza exchanged acreage in its Lynch Property in Lea County,
New Mexico, for a position in Mewbourne's Bradley 29 and Two Mesas
Properties in Eddy County, New Mexico. The trade covers the Bone
Spring formation only, and sets up twelve horizontal Bone Spring
locations to be drilled in 2012 and 2013. Under the trade, it was
agreed that Mewbourne, one of the foremost operators in the Bone
Spring play, would operate the wells.
The initial well in the program, the Bradley "29" Fed Com No. 3H
horizontal well, commenced drilling operations on April 27, 2012.
The primary objective is the Second Bone Spring sand at
approximately 8,221 feet subsurface with a total measured depth of
approximately 12,674 feet. Caza has a 20% working interest and a
15% net revenue interest in the Bradley "29" Fed Com No. 3H
well.
The Bone Spring formation in Lea and Eddy Counties, New Mexico,
contains multiple potential pay zones for oil and liquids-rich
natural gas. Caza's current prospects in the horizontal Bone Spring
play are Lynch, Forehand Ranch, Lennox, Copperline, Mad River,
Bradley 29, Two Mesas and Quail Ridge. The Company has acquired
approximately 4,000 net acres in the play to date. The recently
released reserve report prepared by Netherland, Sewell &
Associates, Inc. as of December 31, 2011, assigned 100 viable Bone
Spring horizontal drilling locations to Caza's current leasehold
position with total proved plus probable plus possible net reserves
to the Company of 16.7 million barrels of oil equivalent ("MMboe")
(proved plus probable net reserves of 9.1 MMboe). This did not
include locations or reserves for the Bradley 29, Two Mesas or
Quail Ridge properties.
Quail Ridge Prospect, Lea County, New Mexico. Caza recently
completed a farmout arrangement with Lincoln Oil & Gas, LLC
("Lincoln"), whereby Caza reserved the option to participate in
wells proposed to Lincoln for between 0.25-4% working interest.
Caza does not view the financial participation to be material,
however it will provide the Company access to valuable well
information from highly respected operators in the horizontal Bone
Spring play. This information will include, but not be limited to,
very important frac designs and drill plans and will further
strengthen Caza's knowledge of the play.
Drilling operations on the Quail "16" State No. 3H horizontal
well, operated by Fasken Oil and Ranch, Ltd., have commenced. The
primary objective is the Third Bone Spring sand at approximately
10,965 feet subsurface with a total measured depth of approximately
15,340 feet. Caza has a 0.25% working interest and an approximate
0.1875% net revenue interest in the Quail "16" State No. 3H
well.
Sombrero Prospect, Lea County, New Mexico. The WC 35 State No. 1
well has reached its total depth of approximately 11,600 feet.
After correlating and reviewing all log data, CML Exploration, LLC
("CML"), the operator, recommended plugging back the open hole
section of the well to test the San Andres interval between
4,814-4,821 feet. This zone was oil productive east and west of the
WC 35 State No. 1 location. Caza concurs with CML's recommendation
and has elected to participate in the current operation. The
Pennsylvanian aged Cisco objective was drill stem tested and found
to be non-commercial.
As previously announced, Caza entered into a farmout agreement
with CML, naming CML as operator. The prospect covers approximately
1,920 gross acres. Caza retained and is participating for a 20%
working interest and an approximate 17.125% net revenue interest in
the WC 35 State No. 1 well.
W. Michael Ford, Chief Executive Officer commented:
"We are very pleased to be drilling our first horizontal Bone
Spring well in New Mexico with Mewbourne. Mewbourne is an
accomplished operator with extensive knowledge in this basin, and
we are looking forward to working with them on these projects. This
will be Caza's first foray into horizontal drilling in this
exciting oil and liquids-rich play. The Quail State well being
drilled by Fasken, another highly respected operator, should also
provide the Company with valuable information that could be used in
Caza's Bone Spring drilling and completion operations later this
year. We have also elected to participate in CML's proposed plug
back operation on the Sombrero property well and hope to complete
the well in the San Andres formation later this month."
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.:
Texas and Louisiana Gulf Coast (on-shore), and the Permian Basin
(West Texas and Southeast New Mexico).
For further information, please contact:
Caza Oil & Gas, Inc.
Michael Ford, CEO +1 432 682 7424
John McGoldrick, Chairman +44 7796 861 892
Cenkos Securities plc
Jon Fitzpatrick +44 20 7397 8900 (London)
Beth McKiernan +44 131 220 6939 (Edinburgh)
VSA Capital Limited
Andrew Raca +44 (0)20 3005 5004
Malcolm Graham-Wood +44 (0)20 3005 5012
M:Communications
Patrick d'Ancona +44 20 7920 2330
Chris McMahon
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", "may", "will", "hope", "project", "predict", "potential",
"intend", "could", "might", "should", "believe", "develop", "test",
"anticipation" and similar expressions. In particular, information
regarding drilling information to be obtained from drilling
operations and intended completion operations 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 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 and could differ materially from what is
currently expected as set out above.
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.
The estimates of reserves for individual project areas may not
reflect the same confidence level as estimates of reserves for all
properties, due to the effects of aggregation. Boe 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
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