6 Oct 2010 07:00
October 6, 2010
CAZA OIL & GAS, INC.
OPERATIONAL UPDATE - TEXAS AND LOUISIANA
HOUSTON, TEXAS Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX: CAZ) (AIM: CAZA) is pleased to provide an update on the current status of its operations in Texas and Louisiana regarding the following projects.
Windham Wolfberry Prospect, Upton County, Texas. As announced on September 29, 2010, the Caza 158 #1 well, the initial well on the prospect, reached its target depth having encountered multiple potential pay sands in the Wolfcamp, Spraberry and Atoka formations and is on schedule to be fracture stimulated in mid-October. As at October 5, 2010, the second well on the prospect, the Caza 162 #1 well had reached a depth of 10,798 feet towards its intended target depth of 11,250 feet. Caza currently has a 25.0% working interest and a corresponding 18.75% net revenue interest in each well.
Bongo Prospect/O.B. Ranch #1 Well, Wharton County, Texas. Caza announced on August 13, 2010, that the completion procedure for the O.B Ranch #1 well would involve perforating the wellbore across multiple intervals in the Cook Mountain sandstone formation and flow-testing the well. The ensuing fracture stimulation procedure was expected to be delayed due to market conditions for fracturing equipment and crews as long as 60 days. Caza now expects to perform these operations including the fracture stimulation procedure by mid-November. Caza has a 40% working interest before completion and a 42.24% working interest after completion (approximate net revenue interest 30%) in the well.
Hite Offset Prospect/Matthys-McMillan Gas Unit #2 Well, Wharton County, Texas. As announced on August 25, 2010, the Matthys-McMillan Gas Unit #2 well was completedin the Yegua formation and subsequently fracture stimulated on August 18, 2010. Caza has now installed permanent production equipment, including a gas lift system, and gross production rates have stabilized at approximately 172 barrels of condensate per day and 440,000 cubic feet of natural gas per day. Caza has a 19.61% working interest and a 14.32% net revenue interest in the well.
Arran Prospect, Acadia Parish, Louisiana. As announced on July 9, 2010, preparatory activities were progressing well on the Arran prospect and Caza expected to commence drilling operations in September 2010. Several permitting procedures have taken longer than first anticipated and Caza now plans to drill the Marian Baker #1 well in November 2010, to a depth of approximately 16,000 feet.
For further information please contact:
| Michael Ford, CEO, Caza Oil & Gas, Inc. John McGoldrick, Chairman, Caza Oil & Gas, Inc. Tim Feather/Richard Baty, Westhouse Securities Limited Jonathan Charles/Ed Portman, Conduit PR | +1 432 682 7424 +18325731914/+447796861892 +44 (0)20 7601 6100 +44 (0)20 7429 6611 |
About Caza
Caza is engaged in the acquisition, exploration, development and production of hydrocarbons in the Texas Gulf Coast (onshore), south Louisiana, southeast New Mexico and the Permian Basin of West Texas regions through its subsidiary, Caza Petroleum Inc.For additional information on Caza, visit www.cazapetro.com.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.
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.
ADVISORY REGARDING FORWARD LOOKING STATEMENTS
Information in this news release that is not current or historical factual information may constitute forward-looking statements within the meaning of securities laws. Such information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "strongly", and similar expressions. Information regarding future operations and results relating to the Caza 158 #1, Caza 162 #1, O.B. Ranch #1, Matthys-McMillan Gas Unit #2 or Marian Baker #1 wells, the Windham Wolfberry, Bongo, Hite Offset or Arran prospects, the geological formations, reserves and revenue increases and the costs and risks associated therewith, and other information relating to future production activities or operations contained in this news release constitutes forward-looking information within the meaning of securities laws.
Implicit in this information, particularly in respect of the wells, prospects, oil production, condensate production, gas production, and flow rates are assumptions regarding drilling results, recovery of production, geology, timing, availability of equipment and projected revenue and expenses. Specifically, the Company has assumed that the wells or prospects will produce positive results. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual future operating results and economic performance of the Company are subject to a number of risks and uncertainties, including general mechanical, geotechnical, engineering, operational, economic, market and business condition risks and could differ materially from what is currently expected as set out above. Future flow rates from any of the wells may vary, perhaps materially, and the wells in question 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. 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 required by applicable securities laws.