Caza Oil & Gas, Inc. ("Caza" or the "Company")
(TSX:CAZ)(AIM:CAZA) is pleased to provide a production update for
the Company's Caza Ridge horizontal Bone Spring well on its
Copperline Prospect in Lea County, New Mexico.
As previously announced, the Caza Ridge 14 State No. 3H
horizontal Bone Spring well was fracture stimulated in twelve
stages and has been flowing back for the past week. Under
controlled flowback the producing rates have continued to increase
each day, and during the past 24 hours the well produced a total of
844 barrels (bbls) of oil, 1,063 thousand cubic feet of natural
gas, which equates to 1,021 bbls of oil equivalent, and 667 bbls of
frac fluid. The well continues to clean up and recovered
hydrocarbons and frac fluids at a gross rate of approximately 1,688
bbls equivalent on an 18/64ths adjustable choke at 2,900 pounds per
square inch flowing casing pressure.
Caza currently has a 45% working interest (35.213% net revenue
interest) before payout and a 58.75% working interest (45.972% net
revenue interest) after payout in the Caza Ridge 14 State No. 3H
well.
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,
Azotea Mesa, Bradley 29, Two Mesas and Quail Ridge. The Company is
well positioned with approximately 3,300 net acres in the play, and
management continues to monitor opportunities to build on Caza's
current acreage position.
W. Michael Ford, Chief Executive Officer commented:
"This is an exceptionally good result for Caza's first operated
horizontal Bone Spring well. We are very pleased with the result
and the value created for our shareholders. In addition to creating
development opportunities associated with the Copperline Property,
this result has de-risked a large portion of our Bone Spring
acreage in Lea County. Production from the Caza Ridge well should
significantly increase Caza's oil to gas production ratio, while
adding additional cash flow and reserve value to the Company."
"Although this is Caza's first operated horizontal Bone Spring
well, all three Bone Spring wells that Caza has participated in
thus far have been successful. We hope to build on this initial
success and are currently drilling the horizontal section of our
operated Forehand Ranch test well, which should reach total
measured depth within the week. Once a frac date for this well has
been scheduled, 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.:
Permian Basin (West Texas and Southeast New Mexico) and Texas and
Louisiana Gulf Coast (on-shore).
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 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 Caza Ridge 14 State No. 3H horizontal Bone
Spring well is in early stages of production, 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.
The Toronto Stock Exchange has neither approved nor disapproved
the information contained herein.
Contacts: Caza Oil & Gas, Inc. Michael Ford CEO +1 432 682
7424 Caza Oil & Gas, Inc. John McGoldrick Chairman +65 9731
7471 (Singapore) www.cazapetro.com Cenkos Securities plc Jon
Fitzpatrick +44 20 7397 8900 (London) Cenkos Securities plc Neil
McDonald +44 131 220 6939 (Edinburgh) VSA Capital Limited Andrew
Raca +44 20 3005 5004 VSA Capital Limited Malcolm Graham-Wood +44
20 3005 5012 M:Communications Patrick d'Ancona +44 20 7920 2330
M:Communications Chris McMahon +44 20 7920 2330