Caza Oil & Gas, Inc. Announces Commencement of Drilling Operations on Second
Caza Ridge Well and Provides Operational Update
HOUSTON, TEXAS -- (Marketwired) -- 06/24/13 -- Caza Oil & Gas, Inc.
("Caza" or the "Company") (TSX:CAZ)(AIM:CAZA) is pleased to announce
that drilling has commenced on the Company's second well on its
Copperline Bone Spring property ("Copperline") in Lea County, New
Mexico. The Caza Ridge 14 State #4H horizontal well commenced
drilling on June 15, 2013.
The well will be drilled to a total vertical depth of approximately
11,750 feet with a total measured depth of approximately 15,895 feet.
This well is a direct offset to the successful Caza Ridge 14 State
#3H well. The primary target is the 3rd Bone Spring Sand interval
with potential secondary targets in the Brushy Canyon, Avalon Shale,
and 1st and 2nd Bone Spring Sands. Caza has a 58.75% working interest
(approximate 44.80% net revenue interest) in the Caza Ridge 14 State
In addition to announcing the commencement of operations on the Caza
Ridge 14 State #4H well, the Company is providing the following
operational update on the Lennox, Madera and Roja properties:
-- The fracture stimulation on the Lennox State Unit 32 #2H horizontal Bone
Spring well was successful. Caza stimulated the 3rd Bone Spring Sand
interval in the lateral section of the well in multiple stages, and also
stimulated the 2nd and 1st Bone Spring Sand intervals in the vertical
section of the well to gauge commerciality and future development
potential. The 1st Bone Spring tested non-commercial and is being
isolated, but the 2nd and 3rd Bone Spring intervals produced oil and
natural gas at commercial rates on test. As planned, the well is being
placed on artificial lift and will be produced to recover frac fluids
and establish stabilized flow rates. Once stabilized rates are
established, the market will be updated accordingly. Caza has a 40.00%
working interest before payout (31.08% net revenue interest) and a
50.00% working interest after payout (38.85% net revenue interest) in
the Lennox State Unit 32 #2H well and will participate with a 50.00%
working interest in all subsequent wells drilled by Caza on the Lennox
-- The initial well at the Roja property in Lea County, NM, the Madera 17
Fed #1H horizontal Brushy Canyon well operated by OXY USA Inc. ("OXY"),
has reached the intended total measured depth of approximately 13,568
feet. The well was recently fracture stimulated in multiple stages and
is currently flowing back to clean up. After the initial flowback
period, OXY intends to put the well on artificial lift to stabilize
production. Once stabilized flow rates are established, the market will
be updated accordingly. Caza has a 20.00% working interest (15.60% net
revenue interest) in the Madera 17 Fed #1H well and the Roja property.
-- The initial well at the Madera property in Lea County, NM, the Madera 35
Fed #1H horizontal Bone Spring well, also operated by OXY, is currently
drilling the horizontal section of the well. The pilot hole was drilled
and logs were recently obtained. Based on analysis of the log data, OXY
will begin drilling the lateral section of the well through the primary
objective 3rd Bone Spring Sand interval to a total measured depth of
approximately 16,839 feet. Once the horizontal section is complete, the
well will be fracture stimulated and the market will be updated
accordingly. Caza has a 20% working interest (15.60% net revenue
interest) in the Madera 35 Fed #1H well and the Madera property.
-- Caza is also preparing the Gateway and West Copperline Bone Spring
prospects for drilling subsequent to the Caza Ridge 14 State #4H well.
W. Michael Ford, Chief Executive Officer commented:
"We are very pleased with the Company's current operations in the
Bone Spring play. The first Caza Ridge well at Copperline was a very
good result, which we hope to duplicate with the recently commenced
Caza Ridge development well. The Lennox well has tested commercial
for oil and natural gas in two of the three Bone Spring Sand
intervals, and we look forward to completing the artificial lift
system and bringing the well online very soon. The OXY operated
Madera and Roja wells are progressing nicely, and we look forward to
providing results on these wells and bringing them online in the near
future, as well."
"Lennox, Madera and Roja provide the Company with good development
potential across expansive lease areas. This should mean repeatable
success across multiple oil and liquids-rich zones in the broader
Bone Spring play. The stacked pay potential for oil and liquids-rich
gas is what makes this play so intriguing. It's also the reason
management has focused efforts on the play, and what should
ultimately make the play successful for Caza and create value for our
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).
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
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 the depth, timing
and location of future drilling, intended well operations and
production testing, future drilling results and success and the
Company's future working interests and net revenue interests in
properties 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.
In addition, the geotechnical analysis and engineering to be
conducted in respect of certain wells may not be complete. Future
flow rates from wells may vary, perhaps materially, and wells may
prove to be technically or economically unviable. Any future flow
rates will be subject to the risks and uncertainties set out herein.
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.
Caza Oil & Gas, Inc.
+1 432 682 7424
Caza Oil & Gas, Inc.
+65 9731 7471 (Singapore)
Cenkos Securities plc
+44 20 7397 8900 (London)
Cenkos Securities plc
+44 131 220 6939 (Edinburgh)
VSA Capital Limited
+44 20 3005 5004
VSA Capital Limited
+44 20 3005 5012
+44 20 7920 2330
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