TIDMCAZA
RNS Number : 1055J
Caza Oil & Gas, Inc.
09 June 2014
June 9, 2014
CAZA OIL & GAS ANNOUNCES
10% INCREASE IN PROVED RESERVES AND UPDATED RESERVES FIGURES
HOUSTON, TEXAS (Marketwire - June 9, 2014) - Caza Oil & Gas,
Inc. ("Caza" or the "Company") (TSX:CAZ) (AIM:CAZA) is pleased to
provide an increase in reserves in the current year as a result of
its successful development drilling program in the Bone Spring
formation since December 31, 2013.
Total Net Reserves: In the Company's latest reserves report as
at April 30, 2014 (the "Reserves Report"), prepared by Netherland
Sewell & Associates, Inc., total proved reserves ("1P") have
increased to 4,875 Mboe, representing an increase of approximately
10% from December 31, 2013. Small gains in the Company's proved
plus probable ("2P") and proved plus probable plus possible ("3P")
reserves were also recorded as a result of the Company's successful
development drilling program during the period.
Net Bone Spring Reserves: The Company currently has 21 gross
(4.6 net) wells producing from the Bone Spring formation. The
Company's Bone Spring properties have been assigned approximately
4,215 Mboe of proved reserves in the Reserves Report (3,727 Mboe as
at December 31, 2013, representing an increase of 13.1% in the
reserves attributed to these properties). The Reserves Report has
also assigned approximately 18,020 Mboe of 2P reserves and
approximately 35,080 Mboe of 3P reserves to these properties
(17,602 Mboe of 2P reserves and approximately 34,600 Mboe of 3P
reserves as at December 31, 2013).
The following tables describe the increase in the Company's net
reserves and associated net present values from December 31, 2013
to April 30, 2014.
Total Net Reserve Volumes:
December 31, 2013 April 30, 2014
-------------------- ------------------------------- -------------------------------
Oil and Natural Mboe Oil and Natural Mboe
NGL Gas NGL Gas
(Mbbl) (MMcf) (Mbbl) (MMcf)
-------------------- --------- --------- --------- --------- --------- ---------
Proved
Developed
Producing 701.7 1,264.2 912.4 1,105.5 1,641.4 1,379.1
-------------------- --------- --------- --------- --------- --------- ---------
Developed
Non-Producing 49.9 269.3 94.8 38.9 255.7 81.5
-------------------- --------- --------- --------- --------- --------- ---------
Undeveloped 2,431.9 6,030.2 3,436.9 2,426.0 5,935.2 3,415.2
-------------------- --------- --------- --------- --------- --------- ---------
Total
Proved 3,183.5 7,563.7 4,444.1 3,570.4 7,832.3 4,875.8
-------------------- --------- --------- --------- --------- --------- ---------
Probable 10,615.2 25,518.0 14,868.2 10,290.4 25,228.6 14,495.2
-------------------- --------- --------- --------- --------- --------- ---------
Total
Proved + Probable 13,798.7 33,081.7 19,312.3 13,860.8 33,060.9 19,371.0
-------------------- --------- --------- --------- --------- --------- ---------
Possible 12,772.5 36,506.6 18,857.0 12,784.0 36,531.4 18,872.5
-------------------- --------- --------- --------- --------- --------- ---------
Total
Proved + Probable
+ Possible 26,571.2 69,588.3 38,169.3 26,644.8 69,592.2 38,243.5
-------------------- --------- --------- --------- --------- --------- ---------
Net Present Values of Future Net Revenue:
December 31, 2013 April 30, 2014
(US$000) (US$000)
-------------------- ------------------ ---------------
Proved
Developed
Producing 30,742.9 48,449.2
-------------------- ------------------ ---------------
Developed
Non-Producing 2,011.5 1,657
-------------------- ------------------ ---------------
Undeveloped 42,806.3 43,938.5
-------------------- ------------------ ---------------
Total
Proved 75,560.7 94,044.6
-------------------- ------------------ ---------------
Probable 144,894.5 139,381.5
-------------------- ------------------ ---------------
Total
Proved + Probable 220,455.2 233,426.1
-------------------- ------------------ ---------------
Possible 84,050.3 87,554.4
-------------------- ------------------ ---------------
Total
Proved + Probable
+ Possible 304,505.5 320,980.5
-------------------- ------------------ ---------------
Notes:
1. Before income taxes, discounted at 10%.
2. Based on forecast pricing as at December 31, 2013.
3. The estimates of future net revenue disclosed herein do not
represent fair market value.
W. Michael Ford, Chief Executive Officer commented:
"We are pleased to provide these updated reserve figures. The
increase in 1P reserves is a result of our successful development
drilling program in the Bone Springs play. As we continue to drill
development wells in the play, we anticipate our 1P reserves will
continue to increase as we prove up probable and possible reserves
from the 2P and 3P categories."
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
Patrick d'Ancona
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.
Note on Reserves Data:
The reserves data set out herein have been extracted from the
Reserves Report and are presented on a net basis. The evaluation of
the reserves data included in the Reserves Report complies with
standards set out in the Canadian Oil and Gas Evaluation Handbook
prepared jointly by the Society of Petroleum Evaluation Engineers
(Calgary Chapter) and the Canadian Institute of Mining, Metallurgy
& Petroleum (Petroleum Society).
Totals may not add because of rounding. Mbbl, MMcf and Mboe
refer to thousand barrels, million cubic feet and thousand barrels
of oil equivalent, respectively.
The term boe may be misleading, particularly if used in
isolation. A boe conversion of six thousand cubic feet per one
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. Given that the value ratio
based on the current price of oil as compared to natural gas is
significantly different from the energy equivalency of 6:1,
utilizing a conversion on a 6:1 basis may be misleading as an
indication of value.
Possible reserves are those additional reserves that are less
certain to be recovered than probable reserves. There is a 10%
probability that the quantities actually recovered will equal or
exceed the sum of proved plus probable plus possible reserves.
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", "project", "predict", "potential",
"intend", "could", "might", "should", "believe", "develop", "test",
"anticipation" and similar expressions. In particular, information
regarding future drilling operations or reserves growth or
reclassification contained in this news release constitutes
forward-looking information within the meaning of securities
laws.
Implicit in this information, are assumptions regarding the
economics of the oil and gas industry, future budgets and costs,
success and timing of drilling operations, rig availability,
projected production, 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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