Caza, as operator, announced that the Caza Elkins 3402 well in Midland County, Texas, reached a total depth of 11,852 feet, and the well was subsequently logged. This log data has confirmed the same multi pay potential for oil and gas in the Spraberry, Wolfcamp, Strawn, Atoka and Mississippian/Devonian formations as is found in the Caza Elkins 3401 well (a direct offset to the Caza Elkins 3402). Caza is currently preparing the Caza Elkins 3402 well for completion operations, which will include a fracture stimulation program.
As previously announced, frac crews are extremely busy in this area. However, Caza was able to secure a frac crew ahead of schedule to perform the fracture stimulation procedure for the Caza Elkins 3401 well, which is now scheduled for today, July 28, 2011. The Company still anticipates the initial fracture stimulation procedure on the Caza Elkins 3402 well to be performed in late August 2011. Caza will update the market once initial flow rates have been established for each well.
The San Jacinto property covers approximately 480 acres with five proven undeveloped locations, including the Caza Elkins 3401 and 3402 locations. Caza has a 100% working interest before completion and an 85% working interest after completion in the Caza Elkins 3401 well with a 63.75% net revenue interest. In all subsequent wells on the San Jacinto property, including the Caza Elkins 3402 well, Caza will have a 75% working interest and a 56.25% net revenue interest.
W. Michael Ford, Caza's Chief Executive Officer commented, "The results of the Caza Elkins 3401 and 3402 wells on the San Jacinto property are positive, and we look forward to fracture stimulating both wells and bringing them into production."
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