Caza Oil & Gas Announces Another Strong Result on 2nd Bone Spring Well at West Copperline
April 17, 2014 (Source: Marketwired) — Caza Oil & Gas, Inc. (“Caza” or the “Company”) (TSX:CAZ)(AIM:CAZA) is pleased to announce another strong result with the West Copperline 29 Fed #2H 2nd Bone Spring development well on the West Copperline Property in Lea County, New Mexico. The Company previously drilled and is producing the West Copperline 29 Fed #1H and #3H wells, which are producing from the 2nd and 3rd Bone Spring Sand intervals respectively.
The West Copperline 29 Fed #2H horizontal Bone Spring development well reached the intended total measured depth of approximately 15,000 feet in the 2nd Bone Spring Sand interval and was subsequently fracture stimulated beginning on March 27, 2014. Under controlled flowback the producing rates have remained steady, and the well produced at a rate of approximately 1,177 barrels (bbls) of oil and 1,133 thousand cubic feet of natural gas, which equates to 1,366 bbls of oil equivalent on April 12, 2014. The well was producing on a 34/64ths adjustable choke at 1,000 pounds per square inch flowing tubing pressure.
In addition to production from the 2nd Bone Spring Sand interval, log data was also obtained across the Brushy Canyon, Avalon Shale and 1st Bone Spring Sand intervals in the well. The data indicates the presence of oil and natural gas across each of these intervals, which is favorable for future development across the unit.
Caza currently has a 62.5% working interest (approximate 46.94% net revenue interest) in the well.
Additionally, the non-operated Marathon Road 15 PA Fed #1H 3rd Bone Spring well has averaged 1,665 barrels (bbls) of oil and 1,594 thousand cubic feet of natural gas, which equates to 1,913 bbls of oil equivalent per day from March 16, 2014 to April 16, 2014. This is the first well on a 600 acre drilling unit, and the operator intends to drill several more wells during the course of this year.
Caza currently has a 14.7% working interest (approximate 12.5% net revenue interest) in the well.
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W. Michael Ford, Chief Executive Officer commented:
“We are very pleased with this exceptional result at West Copperline. The West Copperline 29 Fed #2H well is a direct offset to our West Copperline 29 Fed #1H well. Both wells are producing from the 2nd Bone Spring Sand interval. This is the third significant well producing on the West Copperline Property, and we plan to commence drilling operations on the fourth, the West Copperline 29 Fed #4H well within the next couple of weeks.”
“Additionally, we are very pleased with the results at Marathon Road, as this is one of the highest producing wells in the entire Bone Spring Play to date. We look forward to participating on future wells at Marathon Road as they are proposed later this year.”
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 Petroleum Engineers.
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 timing, success of, and information to be obtained from drilling or completion operations 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 West Copperline 29 Fed #2H and Marathon Road 15 PA Fed #1H horizontal Bone Spring wells are in early stages of production. Future flow rates may vary, perhaps materially, and the test rates 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.
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