HOUSTON, TEXAS--(Marketwire - Aug. 16, 2012) - Caza Oil & Gas, Inc. ("Caza" or the "Company") (CAZ.TO)(CAZA.L) is pleased to announce that drilling has commenced on the Company's Copperline Bone Spring Prospect ("Copperline") in Lea County, New Mexico. The Caza Ridge 14 State #3H horizontal well commenced drilling on August 11, 2012, and is the initial test well at Copperline.
The well will be drilled to a total vertical depth of approximately 11,500 feet with a total measured depth of approximately 15,730 feet. The primary target is the 3rd Bone Spring Sand at a vertical depth of approximately 11,315 feet subsurface with potential secondary targets in the Delaware, Lower Brushy Canyon, Avalon Shale, and 1st and 2nd Bone Spring Sands.
Caza has a 57.5% working interest before pay-out (approximate 45.0% net revenue interest) and a 68.125% working interest after pay-out (approximate 53.3% net revenue interest) in the Caza Ridge 14 State #3H well.
W. Michael Ford, Chief Executive Officer commented:
"We are very pleased to announce the commencement of drilling operations on the Copperline Prospect. This is our first operated Bone Spring project and affirms management's commitment toward oil and liquids-rich projects and our focus on increasing our oil versus gas production ratio. Drilling and completion costs have come down significantly in the Bone Spring play due largely to competition amongst contractors for drilling and fracture stimulation contracts, which is good news for Caza. Positive drilling and production reports continue to come from other companies focused on this play, which has Caza's management increasingly enthusiastic about drilling the Bone Spring projects in the Company inventory. In addition to Copperline, Caza has eight other horizontal Bone Spring prospects under lease including, Forehand Ranch, Lynch, Lennox, Quail Ridge, Bradley 29, Mad River, Two Mesas and Azotea Mesa. We intend to commence drilling operations on Forehand Ranch next, which is scheduled to take place in mid-September."
Caza is engaged in the acquisition, exploration, development and production of hydrocarbons in the following regions of the United States of America through its subsidiary, Caza Petroleum, Inc.: Texas and Louisiana Gulf Coast (on-shore), and the Permian Basin (West Texas and Southeast New Mexico).
In accordance with AIM Rules - Guidance Note for Mining, Oil and Gas Companies, the information contained in this announcement has been reviewed and approved by Anthony B. Sam, Vice President Operations of Caza who is a Petroleum Engineer and a member of The Society of Petroleum Engineers.
Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Such information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "schedule", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "intend", "could", "might", "should", "believe", "develop", "test", "anticipation" and similar expressions. In particular, information regarding the depth, timing and location of future drilling, intended production testing and the Company's future working interests and net revenue interests in properties contained in this news release constitutes forward-looking information within the meaning of securities laws.
Implicit in this information, are assumptions regarding the success and timing of drilling operations, rig availability, projected revenue and expenses and well performance. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual future operations, operating results and economic performance of the Company are subject to a number of risks and uncertainties, including general economic, market and business conditions and could differ materially from what is currently expected as set out above. In addition, the geotechnical analysis and engineering to be conducted in respect of the various wells is not complete. Future flow rates from wells may vary, perhaps materially, and wells may prove to be technically or economically unviable. Any future flow rates will be subject to the risks and uncertainties set out herein.
For more exhaustive information on these risks and uncertainties you should refer to the Company's most recently filed annual information form which is available at www.sedar.com and the Company's website at www.cazapetro.com. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time except as may be required by securities laws.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.