TIDMCAZA
RNS Number : 0591Q
Caza Oil & Gas, Inc.
27 August 2014
August 27, 2014
Caza Oil & Gas, Inc.
CAZA OIL & GAS ANNOUNCES RESULTS OF
SECOND WELL AT GRAMMA RIDGE
HOUSTON, TEXAS (Marketwire - August 27, 2014) - Caza Oil &
Gas, Inc. ("Caza" or the "Company") (TSX: CAZ) (AIM: CAZA) is
pleased to announce another good result at Gramma Ridge and provide
a drilling update at Lennox. Both properties are operated by the
Company.
Gramma Ridge Property, Lea County, New Mexico: The Gramma Ridge
27 State #2H horizontal Bone Spring test well (the "27-2H well")
reached the intended total measured depth of approximately 14,650
feet in the targeted 2(nd) Bone Spring Sand interval and was
subsequently fracture stimulated in 24 stages beginning on August
4, 2014. Under controlled flowback the producing rates have
steadily increased, and the well produced at a 24 hour gross rate
of 870 barrels (bbls) of oil equivalent, which is comprised of 679
bbls of oil and 1.15 million cubic feet of natural gas, on August
24, 2014. The well was producing on a 42/64ths adjustable choke at
370 pounds per square inch flowing tubing pressure. Facilities are
already in place on the property, and both oil and natural gas will
be flowing to sales in short order.
In addition to proving up the 2(nd) Bone Spring Sand interval,
log data was obtained across the Brushy Canyon, Avalon and 1(st)
Bone Spring Sand intervals in the 27-2H well. The data indicates
the presence of oil and natural gas across each of these intervals,
which is favorable for future development on this 320 acre lease.
The 3(rd) Bone Spring Sand is already proven and producing on the
property from the Gramma Ridge 27 State #1H directly offsetting the
27-2H well. Management believes the deeper Wolfcamp formation on
the property is also prospective for oil and natural gas.
Caza currently has a 52.5% working interest (approximate 40.82%
net revenue interest) in the Gramma Ridge 27-2H well and the
property.
Lennox Property, Lea County, New Mexico: The rig from the Gramma
Ridge property was moved to the Lennox property. The Company
commenced drilling operations on the Lennox 32 State Unit #4H
horizontal Bone Spring well (the "32-4H well") on August 17, 2014.
The 32-4H well is currently drilling ahead at approximately 5,760
feet to an intended total vertical depth of 11,300 feet before
drilling the lateral section, which is intended to reach a total
measured depth of 15,740 feet.
Caza has a 50.00% working interest (approximate 38.98% net
revenue interest) in the 32-4H well and the Lennox property.
W. Michael Ford, Chief Executive Officer commented:
"We are extremely pleased with this result at Gramma Ridge. The
initial 3(rd) Bone Spring test well on the property was a step out
from our recent successes in the play, so proving up the 2(nd) Bone
Spring interval with the offset 27-2H test well is an excellent
result that again demonstrates the significant upside to be
realized from stacked pay intervals in the play. This result will
have a positive effect on both reserves and drilling locations on
the property.
We are also happy to be drilling ahead on the Lennox 32-4H well
and look forward to updating the market once this well has been
drilled and completed."
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
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", "suggests" and
similar expressions. In particular, information regarding the
potential or future development of any property, the timing of
future sales, or the timing, depth, scope or success of, and
information to be obtained from, drilling or completion operations,
reserves, drilling locations, future sales and potential pay zones
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 Gramma Ridge 27 State #2H 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. 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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