|By Marketwired .||
|December 20, 2013 02:00 AM EST||
HOUSTON, TEXAS -- (Marketwired) -- 12/20/13 -- Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX: CAZ)(AIM: CAZA) is pleased to announce another strong result for the Company's Bone Spring exploration and development program with the initial test well on the Jazzmaster Property, operated by Endurance Resources, LLC in Lea County, New Mexico.
Jazzmaster Property: The Jazzmaster 17 State No. 4H horizontal Bone Spring test well reached its intended total measured depth of approximately 15,315 feet in the 2nd Bone Spring Sand interval on October 11, 2013, and was subsequently fracture stimulated beginning on November 12, 2013. Under controlled flowback the producing rates have remained steady. On December 13, 2013, the well produced at a peak 24 hour rate of 458 barrels (bbls) of oil and 470 thousand cubic feet of natural gas, which equates to 536 bbls of oil equivalent (Boe). The well continues to clean up and is producing on a 26/64ths choke at 630 pounds per square inch flowing casing pressure. Oil is already being sold and the produced gas will be connected to local sales infrastructure in the near future.
Log data and core samples were also obtained across the Brushy Canyon, Avalon and 1st and 3rd 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 sections.
Caza has a 25.0% working interest (approximately 19.94% net revenue interest) in the Jazzmaster 17 State No. 4H well and the property, which is approximately 480 acres.
West Copperline Property: On November 19, 2013, Caza announced a peak 24 hour gross rate of 800 bbls of oil and 1.21 million cubic feet (MMcf) of natural gas for the West Copperline 29 Fed No. 1H well, which equates to 1,002 Boe. By intentionally holding the well back, the producing rates have remained steady, and the well had a 30 day average of 650 bbls of oil and 1.087 MMcf of natural gas, which equates to 831 Boe.
Caza currently has a 62.5% working interest (approximate 47.25% net revenue interest) in the West Copperline 29 Fed No. 1H well.
Two Mesas Property: The Mewbourne Oil Company operated Two Mesas "7" MP Federal No. 1H horizontal Bone Spring test well reached its intended total measured depth of approximately 12,770 feet in the 2nd Bone Spring Sand interval on November 30, 2013. The well was fracture stimulated on December 18th in multiple stages.
Caza currently has a 5.63% working interest (approximately 4.22% net revenue interest) in the Two Mesas "7" MP Federal No. 1H well.
W. Michael Ford, Chief Executive Officer commented:
"The Jazzmaster completion is another strong result for the Company's Bone Spring program. We are very pleased with this result and the development opportunities it has created. Like Caza's other Bone Spring properties, the Jazzmaster property has multi-pay potential from the primary zones in the play, which should lead to future development drilling on the property. This property is also in close proximity to existing infrastructure, which means it is already contributing to sales and cashflow only days after coming online."
"We are also very pleased with the results at West Copperline. This is a very strong well, and Caza's immediate focus, is to contract a drilling rig for the development of the West Copperline property. The next well drilled will be the West Copperline 29 State Com No. 3H well, which should spud within the next few weeks. We plan to use our existing funding arrangements to retain the rig in order to drill back-to-back wells on the property. If successful, this should add significant cash flow and reserve value to the Company."
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" and similar expressions. In particular, information regarding timing of and information to be obtained from drilling operations, completion operations and future production ratios, cash flows and reserve values 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 Jazzmaster 17 State No. 4H and the West Copperline 29 Fed #1H horizontal Bone Spring wells are 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.
Caza Oil & Gas, Inc.
+1 432 682 7424
Caza Oil & Gas, Inc.
+65 9731 7471 (Singapore)
Cenkos Securities plc
+44 131 220 9778 (Edinburgh)
Cenkos Securities plc
+44 131 220 6939 (Edinburgh)
VSA Capital Limited
+44 20 3005 5004
+44 20 7016 9570