21st Jul 2014 11:52
LONDON (Alliance News) - Caza Oil & Gas Inc Monday said it has produced a strong flowback rate from its second well testing the 3rd Bone Spring formation at the West Copperline property in New Mexico.
The oil and gas exploration and production company also said it has paid off a loan agreement.
Caza Oil & Gas said the West Copperline 29 Fed #4H horizontal Bone Spring development well reached its intended total measured depth of roughly 16,015 feet and was fracked on July 1.
The company said that under controlled flowback, the producing rates have remained steady and the well produced at a peak 24 hour gross rate of 1,598 barrels of oil equivalent.
Caza said the well continues to be cleaned up, and facilities are already in place for the sale of oil and natural gas on the property.
The company is now producing from four wells on the overall West Copperline property, and there are still two remaining 160 acre tracts to be developed in the east of the site.
Caza also said it has reached total measured depth at its Gramma Ridge 27-2H well ahead of schedule, and it is currently drilling ahead of schedule at the Broadcaster development well.
In a separate statement, the company said it has voluntarily prepaid all amounts owed under a USD4.3 million unsecured loan from investment fund YA Global Master SPV Ltd that was announced in November 2013.
The prepayment amount of USD1.7 million terminates the loan between the Caza Oil and Yorkville Advisors LLC, which manages YA Global Master SPV.
"We're pleased to announce the termination of this loan," Chief Executive Michael Ford said in a statement. "The capital associated with the loan provided us with the needed financial flexibility to deploy capital in the Bone Spring Play, which has been beneficial to the company and our shareholders."
Caza Oil & Gas shares were up 1.5% to 21.83 pence on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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