29th May 2014 08:49
LONDON (Alliance News) - Caza Oil & Gas Inc Thursday said it received strong results from its Bone Spring drilling programme with the initial test well on its Gramma Ridge Property in Lea County, New Mexico.
The petroleum and natural gas company said its Gramma Ridge #1H horizontal test well reached its total depth of 15,496 feet in the 3rd Bone Spring Sand interval and was then fracked on May 13. Producing rates at the well have gradually increased, and the well produced a peak rate of 1,602 barrels of oil equivalent per day on May 27, it said.
The company said that oil from the site is already being sold and it expects to have natural gas sales in the near future.
Caza Oil & Gas said log data was also obtained for other intervals in the well, and the data shows the presence of oil and natural gas across its Brushy Canyon, Avalon and 1st and 2nd Bone Spring Sand intervals.
In addition, the company said it is currently drilling ahead of schedule on the West Copperline 29 #4H horizontal Bone Spring well and should reach total depth in the same 3rd Bone Spring Sand interval in around 10 days.
Caza Oil & Gas said a frack is planned for the #4H well on or around June 30 and is expected to deliver good results.
The company said it has started a shallow pool Cherry Canyon development programme at its Forehand Ranch licence in New Mexico, and its non-operated Jazzmaster #3H horizontal Bone Spring well in new Mexico has reached its intended total depth and will be fracked in the near future.
Caza Oil & Gas shares were up 22% to 20.75 pence, putting it top of the AIM ALL-Share risers in morning trading on Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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