TIDMCAZA
RNS Number : 0484W
Caza Oil & Gas, Inc.
20 December 2013
December 20, 2013
Caza Oil & Gas, Inc.
CAZA OIL & GAS PROVIDES BONE SPRING OPERATIONAL UPDATE
HOUSTON, TEXAS (Marketwire - December 20, 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 exploration and development program with the initial test
well on the Jazzmaster Property, operated by Endurance Resources,
LLC in Lea County, New Mexico.
Jazzmaster Property: The Jazzmaster 17 State No. 4H horizontal
Bone Spring test well reached its intended total measured depth of
approximately 15,315 feet in the 2(nd) Bone Spring Sand interval on
October 11, 2013, and was subsequently fracture stimulated
beginning on November 12, 2013. Under controlled flowback the
producing rates have remained steady. On December 13, 2013, the
well produced at a peak 24 hour rate of 458 barrels (bbls) of oil
and 470 thousand cubic feet of natural gas, which equates to 536
bbls of oil equivalent (Boe). The well continues to clean up and is
producing on a 26/64ths choke at 630 pounds per square inch flowing
casing pressure. Oil is already being sold and the produced gas
will be connected to local sales infrastructure in the near
future.
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.
Caza has a 25.0% working interest (approximately 19.94% net
revenue interest) in the Jazzmaster 17 State No. 4H well and the
property, which is approximately 480 acres.
West Copperline Property: On November 19, 2013, Caza announced a
peak 24 hour gross rate of 800 bbls of oil and 1.21 million cubic
feet (MMcf) of natural gas for the West Copperline 29 Fed No. 1H
well, which equates to 1,002 Boe. By intentionally holding the well
back, the producing rates have remained steady, and the well had a
30 day average of 650 bbls of oil and 1.087 MMcf of natural gas,
which equates to 831 Boe.
Caza currently has a 62.5% working interest (approximate 47.25%
net revenue interest) in the West Copperline 29 Fed No. 1H
well.
Two Mesas Property: The Mewbourne Oil Company operated Two Mesas
"7" MP Federal No. 1H horizontal Bone Spring test well reached its
intended total measured depth of approximately 12,770 feet in the
2(nd) Bone Spring Sand interval on November 30, 2013. The well was
fracture stimulated on December 18(th) in multiple stages.
Caza currently has a 5.63% working interest (approximately 4.22%
net revenue interest) in the Two Mesas "7" MP Federal No. 1H
well.
W. Michael Ford, Chief Executive Officer commented:
"The Jazzmaster completion is another strong result for the
Company's Bone Spring program. We are very pleased with this result
and the development opportunities it has created. Like Caza's other
Bone Spring properties, the Jazzmaster property has multi-pay
potential from the primary zones in the play, which should lead to
future development drilling on the property. This property is also
in close proximity to existing infrastructure, which means it is
already contributing to sales and cashflow only days after coming
online."
"We are also very pleased with the results at West Copperline.
This is a very strong well, and Caza's immediate focus, is to
contract a drilling rig for the development of the West Copperline
property. The next well drilled will be the West Copperline 29
State Com No. 3H well, which should spud within the next few weeks.
We plan to use our existing funding arrangements to retain the rig
in order to drill back-to-back wells on the property. If
successful, this should add significant cash flow and reserve value
to the Company".
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)
VSA Capital Limited
Andrew Raca +44 20 3005 5004
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 Jazzmaster 17 State No. 4H and the West
Copperline 29 Fed #1H horizontal Bone Spring wells are 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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