5th Jun 2014 11:48
LONDON (Alliance News) - Caza Oil & Gas Inc Thursday said it has drawn an advance of USD10 million from its Note Purchase Agreement with Apollo Investment Corp to fund drilling in the US.
The petroleum and natural gas company said it has now drawn a total of USD45 million from the facility, which sees Apollo buying up to USD50 million of senior secured notes, subject to certain requirements.
The company said it plans to use the proceeds from the advance to fund development drilling at its West Copperline, Gramma Ridge, Forehand Ranch, Marathon Road and Jazzmaster properties.
It said the Forehand Ranch development drilling will concentrate on the Cherry Canyon formation, while development drilling on the other properties will focus on the Bone Spring formation.
"As demonstrated, the Bone Spring play offers meaningful and consistent opportunities to increase the company's production, cashflow and reserves, which should continue to translate into shareholder value from this area," Chief Executive Michael Ford said in a statement. "We look forward to updating the market as these properties are developed and wells are drilled and brought online."
Caza Oil & Gas shares were down 0.6% to 24.97 pence on Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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