Caza All Smiles over Sombrero Productivity
Caza Oil & Gas, Inc. provided an operational update on the Company's drilling activities in southeast New Mexico.
Sombrero Prospect, Lea County, New Mexico. The CML Exploration, LLC ("CML") operated WC 35 State No. 1 well has been perforated in the San Andres interval between 4,814-4,821 feet. CML is swab testing the well with a 50% oil cut and good fluid entry, reporting 700 feet of fluid on each run. There remains 25% of load to be recovered, and CML is waiting for an available frac crew to frac the well. Caza will update the market accordingly once the frac has taken place. Caza has a 20% working interest and an approximate 17.125% net revenue interest in the WC 35 State No. 1 well.
Bradley 29 Prospect, Eddy County, New Mexico. The Mewbourne Oil Company ("Mewbourne") operated Bradley "29" Fed Com No. 3H horizontal well has reached its primary objective, the Second Bone Spring sand, at a total vertical depth ("TVD") of approximately 8,190 feet subsurface. Mewbourne has commenced drilling the horizontal section of the well through the Second Bone Spring sand. According to the latest drilling survey, the well is at approximately 9,806 feet measured depth ("MD") and is scheduled to be drilled to 12,674 feet MD (8,173 feet TVD). Mewbourne has reported good mud log shows through the Bone Spring section of the well. Caza has a 20% working interest and a 15% net revenue interest in the Bradley "29" Fed Com No. 3H well.
Quail Ridge Prospect, Lea County, New Mexico. The Quail "16" State No. 3H horizontal well, operated by Fasken Oil and Ranch, Ltd. ("Fasken") is drilling at approximately 10,787 feet MD. The primary horizontal objective is the Third Bone Spring sand at approximately 10,965 feet subsurface with a total measured depth of approximately 15,340 feet. Caza has a 0.25% working interest and an approximate 0.1875% net revenue interest in the Quail "16" State No. 3H well.
Lynch Property, Lea County, New Mexico. Cimerex Energy Co. of Colorado ("Cimerex") is producing two horizontal Third Bone Spring wells within half a mile of the Company's Lynch property. Cimerex's Lynch 23 Federal Com #001H well has produced 105,141 barrels of oil ("bbl") and 72.4 million cubic feet of natural gas (MMcf) in its first 131 days of production, which equates to average daily rates of 803 bbl and 553 thousand cubic feet of natural gas ("Mcf"). Cimerex's Lynch 23 Federal Com #002H well has produced 101,111 bbl and 139.7 MMcf in its first 221 days of production, which equates to average daily rates of 458 bbl and 632 Mcf. As mentioned above, the Fasken Quail "16" State No. 3H is also a horizontal Third Bone Spring well. This well is within one mile of Caza's Lynch property and will provide valuable information for the Company's future drilling at Lynch.
As previously announced, 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, Bradley 29, Two Mesas and Quail Ridge. The Company has acquired approximately 4,000 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 progressions to 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 that the San Andres appears to be productive for oil in the Sombrero well. The Permian Basin is known for stacked pay zones, and we look forward to completing the frac job and getting the well completed and on line in the near future. We are also very pleased with progress made by Mewbourne and Fasken to date on the Bradley and Quail State wells. We hope to reach total measured depth on both wells within the next few weeks. Good news continues to be disseminated from activities in the horizontal Bone Spring play, and management is very pleased with recent activities near the Company's Lynch Property. Successful horizontal Bone Spring wells have been drilled on all sides of this property. We have also recently commenced preparations to drill the initial wells at Forehand Ranch, Lennox and Copperline prospects. Once drilling operations have commenced, we will update the market accordingly."