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Whitehellon Aug 12, 2013 4:14am
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Caza Oil & Gas Announces Strong Result on Second Caza Ridge Bone Spring Well
Caza Oil & Gas Announces Strong Result on Second Caza Ridge Bone Spring Well Caza Oil & Gas Announces Strong Result on Second Caza Ridge Bone Spring Well
Monday, August 12, 2013
Caza Oil & Gas Announces Strong Result on Second Caza Ridge Bone Spring Well
02:00 EDT Monday, August 12, 2013
HOUSTON, TEXAS--(Marketwired - Aug. 12, 2013) - Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX:CAZ) (AIM:CAZA) is pleased to announce another strong result for the Company's second Caza Ridge horizontal Bone Spring well on its Copperline Property in Lea County, New Mexico.
The Caza Ridge 14 State No. 4H horizontal 3rd Bone Spring well was fracture stimulated in twenty-four stages and has been flowing back for the past few days. Under controlled flowback the producing rates have remained steady, and the well produced at a peak 24 hour rate of 1,004 barrels (bbls) of oil and 1.3 million cubic feet of natural gas, which in aggregate equates to 1,221 bbls of oil equivalent. The well continues to clean up and recovered hydrocarbons and frac fluids during the same 24 hour period at a gross daily rate of approximately 2,678 bbls equivalent on a 30/64ths adjustable choke at 1,200 pounds per square inch flowing casing pressure.
This is the second successful 3rd Bone Spring well on the Copperline Property. Log data and core samples were also obtained across the Brushy Canyon, Avalon and 2nd Bone Spring Sand intervals. The data indicates the presence of oil and natural gas across each of these intervals, which is favorable for the future development of these shallower sections. Management believes the deeper Wolfcamp formation on the property is also prospective for oil and natural gas.
Caza currently has a 58.75% working interest (44.8% net revenue interest) in the Caza Ridge 14 State No. 4H well.
W. Michael Ford, Chief Executive Officer commented:
"This is another excellent result on the Copperline Property and another successful Bone Spring well for the Company. We are very pleased with the result and the value created for our shareholders. The positive log and core data in the shallower intervals not only creates future development opportunities, but will also add to the Company's reserve values. Production from this well and the property will further increase Caza's oil to gas production ratio and add significant cash flow to the Company."
"We are also very pleased with our current operations in the broader Bone Spring Play, as detailed in the recent Q2 announcement, and will continue to provide appropriate updates to the market as events dictate."