Caza Oil & Gas Makes Additional Hydrocarbon Discovery
Caza Oil & Gas announced a further hydrocarbon discovery and provide an operational update on its activities in the Abo/Wolfcamp horizontal oil play in New Mexico, USA.
The Moore Bailout 11 State #1 horizontal well is the initial well on the Moore Cap #1 prospect and second test well in the play. The well was drilled to a total measured depth of 10,916 feet. The horizontal section was fracture stimulated and a production pump has been installed.
As announced on October 6, 2009, The Lucky Penny 10 State #1 horizontal well located in Lea County, New Mexico was drilled to a total measured depth of 10,571 feet, fracture stimulated and a production pump was installed. While the well is still continuing to flow back fracture fluid, it is also producing oil.
Details on flow rate for both wells will be provided once the fracture fluid has been recovered and oil production has stabilized.
The rig used to drill the Moore Bailout well has been moved to the Bada Bing 23 State #1 location where the pilot, vertical hole has been drilled and logged, and drilling has commenced on the horizontal section.
Caza has a 12.5% carried working interest through commercial production on each of the three wells with corresponding net revenue interests of: Lucky Penny 9.375%; Moore Bailout 9.375%; and Bada Bing 10.1563%. Endeavour International Corporation and Wise Oil & Gas No. 8, Ltd. are the remaining participants in the wells.
Lease Acquisition: During July, August, September and October 2009, Caza increased its acreage position in the Abo/Wolfcamp play by 135% to approximately 19,260 gross acres (3,354 net acres) through the acquisition of acreage around its existing prospect areas.
Mike Ford, CEO and President of the Company, commented, "We are very pleased to have discoveries with our first two wells in the Abo/Wolfcamp horizontal oil play and will continue acquiring acreage within the play. We hope to report encouraging news regarding flow rates in due course."