5th Feb 2014 09:56
LONDON (Alliance News) - Caza Oil & Gas Inc Wednesday said its production rose sharply in the fourth quarter of 2013 as output from its Bone Springs wells continued to ramp up, and it is targeting further big increases in coming months as it brings further wells into production and looks for potential acquisition targets.
In a production report it said net production was 47,996 barrels of oil equivalent in the fourth quarter, up from 36,491 barrels in the third quarter. Daily net production was about 522 barrels of oil equivalent a day, up from 397 barrels in the third quarter and 312 barrels a day in the year-earlier period.
Daily net production reached about 608 barrels of oil equivalent a day in December, up from 384 barrels in September.
It said that the sustained production increases at the Bone Spring operations have made it cashflow positive.
"In just over a year, since the third quarter of 2012, Caza has increased its net daily production by approximately 155% while successfully transforming the company from being predominantly a natural gas producer to being predominantly an oil and liquids producing company, which were both stated goals of management from the onset of transitioning into the Bone Spring Play," it said in its statement.
"If successful, the five wells that are either currently drilling and/or planned for the near term...should continue these trends and have a notably positive effect on both categories once they are online and producing," it added.
Caza said it is planning to drill four operated wells and one non-operated well during the first half of 2014.
If the new wells are successful, it is forecasting net aggregate production of 32,783 barrels of oil equivalent for April, or a daily rate of 1,092 barrels, and a net production of 35,538 barrels for August, or 1,185 barrels a day.
It is also looking to make acquisitions in the Bone Spring area to further boost production and cashflow.
Caza Oil & Gas shares were down 0.1% at 8.12 pence in London Wednesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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