9th Jun 2014 09:46
LONDON (Alliance News) - Caza Oil & Gas Inc Monday said it has increased its total proved reserves following successful development drilling at its Bone Spring formation in New Mexico since the end of 2013.
The petroleum and natural gas company said that total proved reserves in its latest reserves report, completed on April 30 by Netherland Sewell & Associates Inc, increased by 10% to 4.9 million barrels of oil equivalent when compared to December 31.
The company said it also saw small gains in the proved plus probable and proved plus probable plus possible reserves for the site after successful drill results from the Bone Spring formation.
Caza Oil & Gas currently has 21 gross wells producing from the Bone Spring formation, and the new report assigns roughly 4.2 million barrels of oil equivalent proved reserves to the Bone Spring properties.
The increased represents significant value for the company as the net present value of the total proved resources increased to USD94.0 million from USD75.6 million, and the net present value of its proved, probable and possible reserves increased to USD321.0 million from USD304.5 million.
Caza Oil & Gas has announced a range of positive results in recent months from the Bone Spring formation, with the fracked Gramma Ridge #1H horizontal test well producing a peak rate of 1,602 barrels of oil equivalent per day on May 27, and the fracked 15 PA Fed #1H horizontal well producing at a rate of 2,316 barrels of oil equivalent on March 21.
The company said at the end of May that it was drilling ahead of schedule on the West Copperline 29 #4H horizontal Bone Spring well, with a frack planned for the #4H well on or around June 30.
Caza Oil & Gas shares were trading down 0.2% on Monday at 21.34 pence.
By Tom McIvor; [email protected]; @TomMcIvor1
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