HOUSTON, TEXAS -- (Marketwired) -- 05/13/13 -- Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX: CAZ)(AIM: CAZA) is pleased to provide its unaudited financial and operational results for the three-months ended March 31, 2013.
Unaudited First Quarter Financial Results
-- Caza's oil and natural gas liquids (NGL) production increased 18% to 13,820 bbls for the three-month period ended March 31, 2013, from 11,723 bbls for the comparative period in 2012. The Company's oil and NGL production decreased 15% to 13,820 compared to 16,300 bbls in Q4 2012.-- The Company's oil and NGL production has increased to 68% of the Company's combined oil and natural gas production in Q1 2013 from 41% in Q1 2012. As the Company continues to focus on increasing its oil and NGL production, natural gas production figures will likely continue to decline due to normal production declines associated with the Company's historic natural gas wells. As new oil and liquids-rich wells continue to be brought online this trend will eventually be reversed due to the production of associated natural gas by these wells.-- Due in part to mechanical issues at a third party operated processing facility in Lea County, New Mexico (NM), a significant portion of Caza's natural gas and natural gas liquids production was not sold for 61 out of 90 days in the quarter. These issues along with natural decline rates curtailed the Company's natural gas figures for the quarter. Caza's natural gas production decreased 60% to 39,742 Mcf for the three-month period ended March 31, 2013, from 99,563 Mcf for the comparative period in 2012. Caza's Q1 2013 natural gas production of 39,742 Mcf represents a decrease of 47% compared to 74,498 Mcf in Q4 2012. Repairs have recently been successful and operations have been restored to the facility, which should help Caza's production efficiencies for oil, NGLs and natural gas in this area moving forward.-- The average oil price received by Caza decreased 13% to $86.41 per bbl during the three-month period ended March 31, 2013, from $98.76 per bbl during the comparative period in 2012. The average natural gas price received by Caza increased 26% to $3.30 per Mcf during the three-month period ended March 31, 2013, from $2.62 per Mcf during the comparative period in 2012.-- The average combined price received by Caza in Q1 2013 increased 13.72% to $62.58 per Boe compared to $55.03 per Boe in Q4 2012.-- Caza's revenues from oil and gas sales decreased 8% to $1,279,296 for the three-month period ended March 31, 2013, from $1,392,729 for the comparative period in 2012. Caza's Q1 2013 revenues of $1,279,296 represent a decrease of 19.04% to $1,279,296 compared to $1,580,214 in Q4 2012.-- Caza had a cash balance of $6,029,591 as of March 31, 2013, as compared to $6,809,640 at December 31, 2012.
First Quarter Operational Results and Recent Events
-- The initial well at the Roja property in Lea County, NM, the Madera 17 Fed #1H horizontal Brushy Canyon well operated by OXY USA Inc. ("OXY"), is currently drilling the horizontal section of the well. The pilot hole was drilled and logs were obtained on or around April 29, 2013. Based on analysis of the log data, Caza elected to participate with OXY and is currently drilling the lateral section of the Well through the primary objective Lower Brushy Canyon interval centered at a vertical depth of 9,288 feet to a total measured depth of approximately 13,568 feet. Once the horizontal section is complete, the well will be fracture stimulated, and the market will be updated accordingly. Caza has a 20.00% working interest (16.00% net revenue interest) in the Madera 17 Fed #1H well and the Roja property.-- Caza has also received the well election for the OXY operated Madera 35 Fed #1H horizontal well. This well will be the initial well on the Madera property in Lea County, NM. Caza plans to participate with OXY in the well. Caza has a 20% working interest (16% net revenue interest) in the Madera 35 Fed #1H well and the Madera property.-- The fracture stimulation ("frac") on the Lennox State Unit 32 #2H horizontal Bone Spring well began on May 6, 2013. Caza plans to frac the lateral section of the well in multiple stages. Once completed, the well will be flowed back to establish initial production rates and the market will be updated accordingly. Caza has a 40.00% working interest before payout (31.88% net revenue interest) and a 50.00% working interest after payout (39.85% net revenue interest) in the Lennox State Unit 32 #2H well and will participate with a 50.00% working interest in all subsequent wells drilled on the Lennox property.-- Caza recently installed a temporary submersible pump in the Caza Ridge 14 State No. 3H well. Management is happy with the performance of this well, but believes the addition of the submersible pump will help maintain more consistent levels of both oil and natural gas production until the well can be placed on a permanent artificial lift system.-- The Cimarex Energy Company operated Chaparral 33 Federal #3H horizontal Bone Spring well in Lea County, NM, began production on December 8, 2012. In the first thirty days the well averaged 843 bbls/d of oil and 539 Mcf/d. In 142 production days through April 29, 2013, the well has produced 79,641 bbls of oil, 58,531 Mcf and 47,744 bbls of water. Participation in this well will provide Caza with valuable information, which will assist in planning future Caza operated wells in Lea County, NM. Caza has a 1.6% working interest (1.2% net revenue interest) in the Chaparral 33 Federal #3H well.