www.cazapetro.com
Based in The Woodlands, Texas, Caza Oil & Gas, Inc. is engaged in the acquisition, exploration, development and production of hydrocarbons in the Texas Gulf Coast, South Louisiana, Southeast New Mexico and the Permian Basin of West Texas regions of the United States through its subsidiary, Caza Petroleum. Caza Oil & Gas, Inc. is listing on both AIM, a market operated by London Stock Exchange plc, and the Toronto Stock Exchange.
Caza Oil & Gas rallies on well success in Texas
Shares in Caza Oil & Gas (LON:CAZA, TSE:CAZ) jumped this morning after the US focused firm reported that re-entry operations at its McMillan No.1 well in Texas were successful.
The well was perforated at two intervals and fracture stimulated, resulting in initial production rates of 1.375 million cubic feet of natural gas and 57 barrels of oil on November 20.
The well is still recovering fracturing fluid and is expected to be online at the sales point within the next ten days.
“This new well is producing at expected levels and will quickly add to our current cash flow and production levels,” said chief executive of Caza Oil & Gas Michael Ford.
“We look forward to continuing this trend through the development of our currently producing assets and the continued drilling of our diverse project inventory beginning in the near future.”
Earlier this month, Caza reported that its production rose 66 percent to 21,476 barrels of oil equivalent (boe) for the three months to end September compared to 12,949 boe for the same period of 2010.
The third quarter production was also ahead of the previous three months as the company brought more wells online.
As a result, the company saw its quarterly revenues from oil and gas sales soar 152 percent year on year to US$995,466.
Caza holds a 42.53 percent working interest and a 31.05 percent net revenue interest in the McMillan No.1 well.
Shares in Caza rallied nine percent to trade at 10.38 pence, valuing the company at £16 million.
