Caza Oil & Gas, the U.S. focused exploration, appraisal, development and production company, commenced drilling Tuesday on the WC 35 State No. 1 well on the Company's Sombrero prospect in Lea County, New Mexico.
WC 35 State No. 1 is the initial test well on this property. The well has a proposed total depth of approximately 11,600 feet and is targeting oil and natural gas in the Pennsylvanian aged Cisco formation.
As previously announced, Caza entered into a farmout agreement with CML Exploration, naming CML as operator. The prospect covers approximately 1,920 gross acres. Caza retained and is participating for a 20 percent working interest and an approximate 17.125 percent net revenue interest under the farmout with CML.
"We are very pleased that CML has commenced drilling operations on the Sombrero prospect. If successful, this property has good development potential and will add further value to the Company through increased cash flows and oil and natural gas reserves. Although this is a non-operated property, it is an example of utilizing our current prospect and lease inventory to target and test oil and liquids-rich opportunities in southeast New Mexico," said Caza Oil & Gas CEO W. Michael Ford.
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