TIDMCAZA
RNS Number : 7993D
Caza Oil & Gas, Inc.
22 May 2012
May 22, 2012
Caza Oil & Gas, Inc.
CAZA OIL & GAS PROVIDES OPERATIONAL UPDATE
HOUSTON, TEXAS (Marketwire - May 22, 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.
Sombrero Prospect, Lea County, New Mexico. The CML Exploration,
LLC ("CML") operated WC 35 State No. 1 well has been perforated in
the San Andres interval between 4,814-4,821 feet. CML is swab
testing the well with a 50% oil cut and good fluid entry, reporting
700 feet of fluid on each run. There remains 25% of load to be
recovered, and CML is waiting for an available frac crew to frac
the well. Caza will update the market accordingly once the frac has
taken place. Caza has a 20% working interest and an approximate
17.125% net revenue interest in the WC 35 State No. 1 well.
Bradley 29 Prospect, Eddy County, New Mexico. The Mewbourne Oil
Company ("Mewbourne") operated Bradley "29" Fed Com No. 3H
horizontal well has reached its primary objective, the Second Bone
Spring sand, at a total vertical depth ("TVD") of approximately
8,190 feet subsurface. Mewbourne has commenced drilling the
horizontal section of the well through the Second Bone Spring sand.
According to the latest drilling survey, the well is at
approximately 9,806 feet measured depth ("MD") and is scheduled to
be drilled to 12,674 feet MD (8,173 feet TVD). Mewbourne has
reported good mud log shows through the Bone Spring section of the
well. Caza has a 20% working interest and a 15% net revenue
interest in the Bradley "29" Fed Com No. 3H well.
Quail Ridge Prospect, Lea County, New Mexico. The Quail "16"
State No. 3H horizontal well, operated by Fasken Oil and Ranch,
Ltd. ("Fasken") is drilling at approximately 10,787 feet MD. The
primary horizontal 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.
Lynch Property, Lea County, New Mexico. Cimerex Energy Co. of
Colorado ("Cimerex") is producing two horizontal Third Bone Spring
wells within half a mile of the Company's Lynch property. Cimerex's
Lynch 23 Federal Com #001H well has produced 105,141 barrels of oil
("bbl") and 72.4 million cubic feet of natural gas (MMcf) in its
first 131 days of production, which equates to average daily rates
of 803 bbl and 553 thousand cubic feet of natural gas ("Mcf").
Cimerex's Lynch 23 Federal Com #002H well has produced 101,111 bbl
and 139.7 MMcf in its first 221 days of production, which equates
to average daily rates of 458 bbl and 632 Mcf. As mentioned above,
the Fasken Quail "16" State No. 3H is also a horizontal Third Bone
Spring well. This well is within one mile of Caza's Lynch property
and will provide valuable information for the Company's future
drilling at Lynch.
As previously announced, 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. Leasing and drilling activity continues to increase in the
play and initial producing well rates continue to improve with
technological progressions to drilling and frac designs. The
Company is well positioned in the play, and management continues to
monitor opportunities to build on Caza's current acreage
position.
W. Michael Ford, Chief Executive Officer commented:
"We are very pleased that the San Andres appears to be
productive for oil in the Sombrero well. The Permian Basin is known
for stacked pay zones, and we look forward to completing the frac
job and getting the well completed and on line in the near future.
We are also very pleased with progress made by Mewbourne and Fasken
to date on the Bradley and Quail State wells. We hope to reach
total measured depth on both wells within the next few weeks. Good
news continues to be disseminated from activities in the horizontal
Bone Spring play, and management is very pleased with recent
activities near the Company's Lynch Property. Successful horizontal
Bone Spring wells have been drilled on all sides of this property.
We have also recently commenced preparations to drill the initial
wells at Forehand Ranch, Lennox and Copperline prospects. Once
drilling operations have commenced, we will update the market
accordingly."
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", "looks to be" 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. Testing of the wells described
in this press release has not been completed, 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.
Information in this news release regarding areas in the Bone
Spring Formation in which the Company does not have an interest may
not have been prepared by a qualified reserves evaluator or auditor
in accordance with the Canadian Oil & Gas Evaluators Handbook.
Such information relates to areas which are proximate to areas in
which the Company has or intends to acquire an interest and has
been provided so that readers may better understand oil and gas
activities in areas in which the Company operates or plans to
operate. There is no warranty, express or implied, that the results
of the Company will be consistent with such information. The
Company's results may differ materially and readers should not
assume the Company's results will be consistent with those of other
operators or use such information for any purpose other than as
specified herein. Information regarding the Cimerex wells was
obtained through the State of New Mexico Oil Conservation Division
website and was dated as at March 20, 2012.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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