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Additional Information

Market:	AIM
Sector:	Oil and Gas Exploration and Production
EPIC:	CAZA
Latest Price:	11.50 (-3.16% )
52-week High:	57.50
52-week Low:	8.25
Market Cap:	18.95M

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Caza Oil & Gas Full Caza Oil & Gas profile here

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 spuds initial test well at Windham Wolfberry prospect in Texas

Friday, September 03, 2010

US operating oil and gas junior Caza Oil & Gas (LON:CAZA) has commenced scheduled drilling on the initial test well at its Windham (Wolfberry) prospect in Upton County, Texas.

The well, which will take about 35 days to drill to approximately 11,500 ft (feet), will test the Spraberry and Wolfcamp (Wolfberry) formations. The prospect covers approximately 1,318 net acres and, should it be successful, could initially be developed on 80 acre spacing units.

The drilling operations on the Caza 158 #1 test well are being carried out by Caza’s partner and the operator of the project Devon Energy Production Company.

“We are very pleased to announce the commencement of drilling operations for the initial well on the Windham prospect. This is an oil project with good upside potential for Caza.

“We are also delighted to have an experienced operator in Devon leading the project,” said Chief Executive of Caza Oil & Gas Michael Ford.

Following the completion of the well, Devon will have the right to participate for its 75% interest in all operations associated with the property, and Caza will participate for its remaining 25% interest.

Caza has said that its farm-outs of the Arran and Windham Wolfberry prospects fit its strategy of gaining exposure to “large, high-impact opportunities” and managing its financial exposure through farm-outs and industry partnerships.

The company believes these projects have the potential to open up numerous development locations and prove up significant reserves.

In mid-August, shares in Caza more than doubled after logging results from the OB Ranch 1 well on the Bongo field showed the company hit a pay zone measuring more than 100 feet containing gas and gas liquid at depths of between 12,400 and 12,900 feet.

Caza said that a lot of wells in Texas and Louisiana, which are its focus areas, have got multi-pay, containing oil and gas at different levels, which leads to “occasional nice surprises”.

Caza’s strategy differs from that of other companies as instead of acquiring exploration acreage and commissioning expensive seismic, Caza struck a deal with specialist seismic contractors to get cheaper access to seismic data. Caza chairman John McGoldrick has said his company has “probably the biggest database of just about any independent”.

As at June 30, the group had cash of US$9.3 million, which it said was enough to meet its current needs.

Shares in Caza added 9% this morning after rallying 13.5% yesterday.

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