Caza Oil & Gas (LON:CAZA) revealed a 176% jump in revenues to US$22.9mln during 2014, and while it has scaled back drill plans due to lower oil prices the company still sees potential to increase shareholder value significantly.
The company said its objective eventually is to again accelerate and expand its drilling programme in the Bone Spring play over the next two years.
“Caza has drilled or participated in 31 successful wells since the start of our Bone Spring drilling programme in 2012,” said chief executive Michael Ford.
“These operations resulted in added shareholder value and grew company cash flow, production and reserve values.
“We recognise that the current low oil price environment is not ideal, but we are well positioned, in what we believe to be one of the best plays in North America, with very good assets, a sound hedging strategy and strong current cash flow.”
During 2014, Caza increased its average production by 173% to 923 barrels oil equivalent per day (boepd), from 338 boepd in the previous year. Annual revenue increased 176% to US$22.9mln, while revenue in the final three months of the year was up 43% at US$4.8mln.
Around 80% of the group’s production is hedged through to 2017.
Caza ended the twelve months, to December 31, with US$5.2mln of cash and equivalents.