HOUSTON, TEXAS -- (Marketwired) -- 06/24/13 -- Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX: CAZ)(AIM: CAZA) is pleased to announce that drilling has commenced on the Company's second well on its Copperline Bone Spring property ("Copperline") in Lea County, New Mexico. The Caza Ridge 14 State #4H horizontal well commenced drilling on June 15, 2013.
The well will be drilled to a total vertical depth of approximately 11,750 feet with a total measured depth of approximately 15,895 feet. This well is a direct offset to the successful Caza Ridge 14 State #3H well. The primary target is the 3rd Bone Spring Sand interval with potential secondary targets in the Brushy Canyon, Avalon Shale, and 1st and 2nd Bone Spring Sands. Caza has a 58.75% working interest (approximate 44.80% net revenue interest) in the Caza Ridge 14 State #4H well.
In addition to announcing the commencement of operations on the Caza Ridge 14 State #4H well, the Company is providing the following operational update on the Lennox, Madera and Roja properties:
-- The fracture stimulation on the Lennox State Unit 32 #2H horizontal Bone Spring well was successful. Caza stimulated the 3rd Bone Spring Sand interval in the lateral section of the well in multiple stages, and also stimulated the 2nd and 1st Bone Spring Sand intervals in the vertical section of the well to gauge commerciality and future development potential. The 1st Bone Spring tested non-commercial and is being isolated, but the 2nd and 3rd Bone Spring intervals produced oil and natural gas at commercial rates on test. As planned, the well is being placed on artificial lift and will be produced to recover frac fluids and establish stabilized flow rates. Once stabilized rates are established, the market will be updated accordingly. Caza has a 40.00% working interest before payout (31.08% net revenue interest) and a 50.00% working interest after payout (38.85% 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 by Caza on the Lennox property.-- 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"), has reached the intended total measured depth of approximately 13,568 feet. The well was recently fracture stimulated in multiple stages and is currently flowing back to clean up. After the initial flowback period, OXY intends to put the well on artificial lift to stabilize production. Once stabilized flow rates are established, the market will be updated accordingly. Caza has a 20.00% working interest (15.60% net revenue interest) in the Madera 17 Fed #1H well and the Roja property.-- The initial well at the Madera property in Lea County, NM, the Madera 35 Fed #1H horizontal Bone Spring well, also operated by OXY, is currently drilling the horizontal section of the well. The pilot hole was drilled and logs were recently obtained. Based on analysis of the log data, OXY will begin drilling the lateral section of the well through the primary objective 3rd Bone Spring Sand interval to a total measured depth of approximately 16,839 feet. Once the horizontal section is complete, the well will be fracture stimulated and the market will be updated accordingly. Caza has a 20% working interest (15.60% net revenue interest) in the Madera 35 Fed #1H well and the Madera property.-- Caza is also preparing the Gateway and West Copperline Bone Spring prospects for drilling subsequent to the Caza Ridge 14 State #4H well.