Caza Oil & Gas, Inc. announce results at Gramma Ridge
Caza Oil & Gas, Inc. (“Caza” or the “Company”) (TSX: CAZ) (AIM: CAZA) is pleased to announce another good result at Gramma Ridge and provide a drilling update at Lennox. Both properties are operated by the Company.
Gramma Ridge Property, Lea County, New Mexico: The Gramma Ridge 27 State #2H horizontal Bone Spring test well (the “27-2H well”) reached the intended total measured depth of approximately 14,650 feet in the targeted 2nd Bone Spring Sand interval and was subsequently fracture stimulated in 24 stages beginning on August 4, 2014. Under controlled flowback the producing rates have steadily increased, and the well produced at a 24 hour gross rate of 870 barrels (bbls) of oil equivalent, which is comprised of 679 bbls of oil and 1.15 million cubic feet of natural gas, on August 24, 2014. The well was producing on a 42/64ths adjustable choke at 370 pounds per square inch flowing tubing pressure. Facilities are already in place on the property, and both oil and natural gas will be flowing to sales in short order.
In addition to proving up the 2nd Bone Spring Sand interval, log data was obtained across the Brushy Canyon, Avalon and 1st Bone Spring Sand intervals in the 27-2H well. The data indicates the presence of oil and natural gas across each of these intervals, which is favorable for future development on this 320 acre lease. The 3rd Bone Spring Sand is already proven and producing on the property from the Gramma Ridge 27 State #1H directly offsetting the 27-2H well. Management believes the deeper Wolfcamp formation on the property is also prospective for oil and natural gas.
Caza currently has a 52.5% working interest (approximate 40.82% net revenue interest) in the Gramma Ridge 27-2H well and the property.
Lennox Property, Lea County, New Mexico: The rig from the Gramma Ridge property was moved to the Lennox property. The Company commenced drilling operations on the Lennox 32 State Unit #4H horizontal Bone Spring well (the “32-4H well”) on August 17, 2014. The 32-4H well is currently drilling ahead at approximately 5,760 feet to an intended total vertical depth of 11,300 feet before drilling the lateral section, which is intended to reach a total measured depth of 15,740 feet.
Caza has a 50.00% working interest (approximate 38.98% net revenue interest) in the 32-4H well and the Lennox property.
W. Michael Ford, Chief Executive Officer commented:
“We are extremely pleased with this result at Gramma Ridge. The initial 3rd Bone Spring test well on the property was a step out from our recent successes in the play, so proving up the 2nd Bone Spring interval with the offset 27-2H test well is an excellent result that again demonstrates the significant upside to be realized from stacked pay intervals in the play. This result will have a positive effect on both reserves and drilling locations on the property.
We are also happy to be drilling ahead on the Lennox 32-4H well and look forward to updating the market once this well has been drilled and completed.”
Source: Caza Oil & Gas, Inc.