Caza Hits Paydirt at Glass Ranch B-1
Caza Oil & Gas, Inc. announced that the second well of a four well program, the Glass Ranch B #1 in Upton County, Texas, has successfully encountered hydrocarbons.
The well, operated by Momentum Energy Corporation of Midland Texas, reached a total depth of 10,404 feet on July 28, 2008. Electric logs indicated multiple potential pay sands in the Wolfcamp and Spraberry formations. Completion operations have commenced and a fracture stimulation is planned for the near future. Following the success, the rig is being moved to an offsetting location to spud the Glass Ranch B #3 well.
Caza currently has a 50.0% working interest and a corresponding 38.54% net revenue interest before payout of the well, which will change after payout to an estimated 47.41% working interest and an estimated 35.78% net revenue interest.
Since the Company's shares were admitted to trading on AIM and TSX in December 2007, Caza has drilled seven wells of which six encountered hydrocarbons. Four of the wells are in production while two are in the process of completion for production. A further ten wells are anticipated to be drilled before the end of 2008. The wells drilled and to be drilled are a mixture of exploration and offset development wells.
The Jonell Cerny well, as previously announced on May 9, 2008, experienced mechanical difficulties which prevented completion at that time. The well was however completed at an upper level in the Yegua formation and has been producing oil and gas in limited quantities. A fracture stimulation operation is planned in the near future as an attempt to increase the production.
John McGoldrick, Caza's Executive Chairman, commented, "In addition to our successful 2008 first half drilling program, we were delighted in June to receive strong institutional support for a further fund raising of Pounds Sterling 11.5 million which enables us to fully execute our planned 2008 drilling program.
Our focus on regional knowledge and 3D seismic data is proving to be successful, and given our current momentum and recent capital infusion, we intend to build upon these successes with ten additional wells scheduled to commence drilling before the end of 2008."