Caza Oil & Gas (LON:CAZA, TSX:CAZ) has started to produce oil and gas from the Bongo field in Wharton County, Texas.
This morning it told investors that its permanent production facilities are now in place and the O.B. Ranch #1 well was brought into production on 13 December 2010.
Initial production is at around 2.48 million cubic feet of natural gas per day and 400 barrels of oil per day. Around 190 barrels of water are being recovered per day.
There are still around 750 barrels of fracture fluid to recover from the well. Caza intends to update investors again once the well has stabilised.
Additionally Caza also revealed that it has acquired another 2 percent of the project, taking its working interest to 45.28 percent.
It has a 33.51 percent net revenue interest in the O.B. Ranch #1 well well.
Last month Caza signalled it was ready to step up its development and exploration efforts when it raised £18.9 million in a placing.
It said at the time it planned to accelerate the three-well development programme on the Bongo project in Texas.
The cash was also earmarked to fund drilling across the exploration portfolio – with wells planned at Cook Mountain, in the West Texas Permian Basin, Windham Wolfberry and on the Bolmex trend in Louisiana.
In the year to date the shares have advanced almost 500 percent as investors have come to recognise the potential of the group's assets, and in the excitement surrounding Bongo.