Caza is pleased to provide an operational update on the company's activities in Southwest Louisiana, South Texas and New Mexico.
The Matthys-McMillan #1 well forms part of the "Hite Offset Property" and is located in the Wharton West Wilcox Field, Wharton County, Texas. Following perforation of an additional zone, the well is currently flowing at a flow rate of 4.6 million standard cubic feet per day of gas, an increase of approximately 53% over the initial flow rate. The Company is currently assessing this well for fracture stimulation in the near future. Caza is the operator of, and has a 19.6% working interest (14.4% net revenue interest) in, this well.
Located in Calcasieu Parish, Louisiana, the Bell Minerals #1 Well reached its target depth of 9,400 feet in the Hackberry Sectionon 16 January 2008. The well was then logged but did not encounter hydrocarbons. Information from the well will be used to further evaluate the potential of the area. Caza has a 70.0% working interest (49.0% net revenue interest) in this well.
Located in Wharton County, Texas, the Jonell Cerny gas unit #1 well commenced drilling on 15 January 2008.Anticipated to take 60 days to drill, this well is targeting gas in the Deep Wilcox Sands at a total depth of 16,500 feet. The targeted sands are currently producing in the nearby Matthys-McMillan well. The test well, if successful, will establish numerous development locations. Caza is the operator of this well and following completion of the well will have a 47.8% working interest (35.8% net revenue interest) in this well.
Located in Lea County, New Mexico, the Mud Slide Slim "15" Federal Com. #1 commenced drilling on 12 January 2008. Anticipated to take 30 days to drill, this well is targeting gas in the middle Morrow formation at a depth of 13,200 feet. The middle Morrow formation produces from wells directly offsetting the Caza acreage. Caza has a 40.0% working interest (31.3% net revenue interest) in this well..
Located in Lea County, New Mexico. After further evaluation, Caza has elected not to participate in the drilling of this property and therefore has no remaining interest.
In two separate commercial transactions, Caza has purchased participation rights from Austex Enterprises and Midland Oil & Gas, Inc. equal to 25% of Caza's potential working interest in all projects located under certain Transition Zone seismic data volumes covering approximately 2,300 square miles located in South Louisiana and the Texas Gulf Coast Regions. As a result of the transactions, Caza has increased its potential working interest and would have the controlling interest in projects derived from these data volumes.
"Our first month of life as a public company has been very busy with Caza drilling three operated wells," said Mike Ford, CEO of the company. "In line with our strategy, during 2008 we do not intend to drill any further wells on the Alligator Property but intend to mainly focus our efforts on the Wharton West Wilcox area."
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