Caza Disappointed by Arran Results
Caza O&G has announced that the Marian Baker #1 well (the "Well") on the Arran prospect in Acadia Parish, Louisiana, was drilled to a total depth of 15,462 feet on March 20, 2011.
Caza has analyzed data collected from the Well. Although several sand sections exist throughout the wellbore, the log data indicates that the targeted Middle Frio section between 12,500-15,462 feet has extremely low porosity and permeability. The shallower sands in the Upper Frio sections between 9,600-12,200 feet, which produce in the immediate area from the Midland Field, appear to be wet at this location. However, based on log data, the Company has reason to evaluate these shallower sands for additional potential across its current acreage block. After determining that none of the sands are likely to be productive at commercial rates, the Company has sought approval from its partners in the Well to proceed with plug and abandonment procedures.
Caza had a 25% working interest before casing point in the Marian Baker #1 well. The Well was drilled on time and within the estimated dry hole costs.
Following its release of year-end reporting documents later this week, Caza will be making further operational announcements in the near future regarding plans for its other projects including: Bongo/O.B. Ranch development, Windham Wolfberry development and additional exploratory projects (including updates on our future south Louisiana projects such as Tiree and Lewis).
Mike Ford, Chief Executive Officer of the Company, commented, "Although results on the Marian Baker #1 well are disappointing, it is important to note that because very little subsurface data exists in this area at these depths, Caza expects that the data collected while drilling the well will be valuable as we define additional high-value exploration prospects in this area. Additionally, the Company will continue using a significant portion of the funds from the equity raise in November 2010 on development and exploratory drilling in 2011. Our cash reserves should have the Company well placed to execute a strategy of revenue and reserve growth throughout 2011."