Caza Oil & Gas (LON:CAZA, TSX:CAZ) told investors that the spudding of the Marian Baker #1 well, the Arran prospect in Louisiana, has been delayed because its contractor has been held up.
The well is now expected to spud in mid-January, then it will be drilled to a total depth of 16,000 feet. Marian Baker 1 is designed to test multiple potential hydrocarbon bearing reservoir sections.
The company said that contractor Nabors Drilling USA advised them that the Nabors Rig 4 is continuing operations at its current location longer than anticipated.
The Marian Baker #1 well site is substantially complete and it is ready for the rig.
Caza signalled it was ready to step up its development and exploration efforts in November, 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.
Last week, Caza started to produce oil and gas from the Bongo field in Wharton County, Texas.
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.