HOUSTON, TEXAS--(Marketwire - Sept. 13, 2012) - 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."
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.: Texas and Louisiana Gulf Coast (on-shore), and the Permian Basin (West Texas and Southeast New Mexico).
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", "may", "will", "hope", "project", "predict", "potential", "intend", "could", "might", "should", "believe", "develop", "test", "anticipation", "looks to be" and similar expressions. In particular, information regarding drilling information to be obtained from drilling operations and intended completion operations 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 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 and could differ materially from what is currently expected as set out above. Testing of the wells described in this press release has not been completed, 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.
Information in this news release regarding areas in the Bone Spring Formation in which the Company does not have an interest may not have been prepared by a qualified reserves evaluator or auditor in accordance with the Canadian Oil & Gas Evaluators Handbook. Such information relates to areas which are proximate to areas in which the Company has or intends to acquire an interest and has been provided so that readers may better understand oil and gas activities in areas in which the Company operates or plans to operate. There is no warranty, express or implied, that the results of the Company will be consistent with such information. The Company's results may differ materially and readers should not assume the Company's results will be consistent with those of other operators or use such information for any purpose other than as specified herein.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.