TIDMCAZA
RNS Number : 3459T
Caza Oil & Gas, Inc.
19 November 2013
November 19, 2013
CAZA OIL & GAS ANNOUNCES STRONG RESULT ON
INITIAL BONE SPRING TEST WELL AT WEST COPPERLINE
HOUSTON, TEXAS (Marketwire - November 19, 2013) - Caza Oil &
Gas, Inc. ("Caza" or the "Company") (TSX: CAZ) (AIM: CAZA) is
pleased to announce another strong result for the Company's Bone
Spring program with the initial test well on its West Copperline
Property in Lea County, New Mexico.
The West Copperline 29 Fed #1H horizontal Bone Spring test well
reached its intended total measured depth of approximately 15,035
feet in the 2(nd) Bone Spring Sand interval on October 11, 2013,
and was subsequently fracture stimulated beginning on November 1,
2013. Under controlled flowback the producing rates have remained
steady, and the well produced at a peak 24 hour gross rate of 800
barrels (bbls) of oil and 1.21 million cubic feet of natural gas,
which equates to 1,002 bbls of oil equivalent on November 15, 2013.
The well continues to clean up and is producing on a 22/64ths
adjustable choke at 1,835 pounds per square inch flowing tubing
pressure.
Log data and core samples were also obtained across the Brushy
Canyon, Avalon and 1(st) and 3(rd) Bone Spring Sand intervals. The
data indicates the presence of oil and natural gas across each of
these intervals, which is favorable for the future development of
these sections. 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 47.25%
net revenue interest) in the West Copperline 29 Fed #1H well.
W. Michael Ford, Chief Executive Officer commented:
"This is an excellent result on the West Copperline Property and
another successful Bone Spring well for the Company. We are very
pleased with this result and the value created for our
shareholders. Oil is already being sold, and natural gas should be
flowing to sales within a week to ten days. We plan to develop this
property as soon as our drilling permits are approved. The positive
log and core data in the shallower intervals and the other Bone
Spring intervals not only create future development opportunities,
but will also add to the Company's reserve value. Production from
this well and the property will further increase Caza's oil to gas
production ratio and add significant cash flow to the Company."
"We are also very pleased with our current operations in the
broader Bone Spring Play, as detailed in the recent Q3
announcement, and will continue to provide appropriate updates to
the market as events dictate."
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
Jon Fitzpatrick +44 20 7397 8900 (London)
Neil McDonald +44 131 220 6939 (Edinburgh)
VSA Capital Limited
Andrew Raca +44 20 3005 5004
Malcolm Graham-Wood +44 20 3005 5012
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" and similar
expressions. In particular, information regarding timing of and
information to be obtained from drilling operations, completion
operations and future production ratios, cash flows and reserve
values 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 #1H 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
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