US focussed Caza Oil & Gas (LON:CAZA) today announced that drilling has begun on the Copperline prospect, within the Bone Springs play in Lea County, New Mexico.
The horizontal well, tagged ‘Caza Ridge 14 State 3H’, is the first well to test Copperline. And it will be drilled to a vertical depth of 11,500 feet, with total drilling of 15,730 feet.
It will primarily target the Third Bone Springs sand at an estimated vertical depth of 11,315 feet. And it has a number of possible secondary targets - the Delaware, Lower Brushy Canyon, Avalon Shale, and 1st and 2nd Bone Spring Sands.
“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,” said chief executive Michael Ford.
“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.”
Ford highlight that in addition to Copperline, Caza has currently has eight other horizontal Bone Spring prospects under lease. And the next property to be drilled is the Forehand Ranch. Drilling operations have been slated for mid-September there.
Caza owns a 57.5 per cent stake in the Copperline project, and it has a 68.125 per cent participating interest in the Caza Ridge 14 State 3H well.
Copperline is the first Bone Springs project that Caza is operating itself. Though it has had non-operated interests in one previous well, the Bradley ‘29’ Fed Com No. 3H horizontal well, which was drilled and fracked earlier this year.