Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX:CAZ)(AIM:CAZA) is pleased to provide an operational update on the Company's drilling activities at Copperline Prospect in Lea County, New Mexico.
Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX:CAZ)(AIM:CAZA) is pleased to provide an operational update on the Company's drilling activities at Copperline Prospect in Lea County, New Mexico.
The Caza Ridge 14 State No. 3H horizontal well has reached the intended total vertical depth of approximately 11,750 feet subsurface and log data and core samples have been obtained. Based on analysis of the log and core data, Caza and its partners are now preparing to commence drilling the horizontal section of the well through the primary objective Lower 3rd Bone Spring Sand, targeting the interval centered at 11,365 feet measured depth. The horizontal section will be approximately 4,620 feet in length, and the well is scheduled to be drilled to a total measured depth of approximately 15,780 feet. Once the horizontal section is complete, the well will be fracture stimulated, and the market will be updated accordingly.
There were good mud log shows for oil and natural gas throughout the Bone Spring formation while drilling the vertical section, notably in the Avalon Shale and 3rd Bone Spring Sand along with shows in the shallower Lower Brushy Canyon and deeper Wolfcamp formations. All shows will be considered for further evaluation both behind pipe and for future drilling on the lease and in the play.
Caza farmed out an additional 9.375% interest since the spud announcement on August 16, 2012, and now 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 has acquired approximately 3,300 net acres in the play to date. Leasing and drilling activity continues to increase in the play and initial producing well rates continue to improve with technological advances in drilling and frac designs. The Company is well positioned in the play, and management continues to monitor opportunities to build on Caza's current acreage position.
W. Michael Ford, Chief Executive Officer commented:
"We are very pleased with the current results of the Caza Ridge well. The information acquired is positive for this well and for our Bone Spring drilling program in general. The Permian Basin is known for stacked pay zones, and log and core data from the well have confirmed the presence of multiple potential pay zones containing oil and liquids-rich natural gas. We look forward to completing the horizontal section of the well and scheduling a frac job in order to complete the well and bring it on line in the near future. We also expect to commence drilling operations on our Forehand Ranch Bone Spring prospect on or before October 1, 2012, and will update the market accordingly."