Following financial and production decreases in the third quarter of 2015, compared to the same period last year, Caza Oil & Gas has announced that it is scaling back costs.
The company’s revenues fell 72 percent in the quarter, year on year, to $1.99 million and its adjusted EBITDA dropped 44 percent, compared to 3Q 2014, to $2.51 million. Caza’s average net production volumes decreased 51 percent year on year to 594 barrels of oil equivalent per day, compared to 1,210 boepd in 3Q 2014.
In an effort to continue as a going concern, the company has stated it is continuing to scale back general and administration costs and capital expenditures associated with non-obligatory wells. Caza also revealed that it aims to direct capital towards lease maintenance wells in its Bone Spring drilling program and stated that it is in advanced discussions with a “third party” regarding potential equity financing.
A company statement in Caza’s 3Q results said:
“Subject to the availability of appropriate financing and dependent upon drilling costs and prevailing commodity prices, the company's objective is to eventually accelerate and expand its drilling program in the Bone Spring play over the next two years. A program of this type will require additional financing and would utilize excess operational cash flow to fund further development drilling and lease purchases beyond the initial two year period.”
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