5 Nov 2009 07:00
November 5, 2009
CAZA OIL & GAS ANNOUNCES HYDROCARBON DISCOVERY AND PROVIDES OPERATIONAL UPDATE
HOUSTON, TEXAS Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX: CAZ) (AIM: CAZA) is pleased to announce a further hydrocarbon discovery and provide an operational update on its activities in the Abo/Wolfcamp horizontal oil play in New Mexico, USA.
The Moore Bailout 11 State #1 horizontal well is the initial well on the Moore Cap #1 prospect and second test well in the play. The well was drilled to a total measured depth of 10,916 feet. The horizontal section was fracture stimulated and a production pump has been installed.
As announced on October 6, 2009, The Lucky Penny 10 State #1 horizontal well located in Lea County, New Mexico was drilled to a total measured depth of 10,571 feet, fracture stimulated and a production pump was installed. While the well is still continuing to flow back fracture fluid, it is also producing oil.
Details on flow rate for both wells will be provided once the fracture fluid has been recovered and oil production has stabilized.
The rig used to drill the Moore Bailout well has been moved to the Bada Bing 23 State #1 location where the pilot, vertical hole has been drilled and logged, and drilling has commenced on the horizontal section.
Caza has a 12.5% carried working interest through commercial production on each of the three wells with corresponding net revenue interests of: Lucky Penny 9.375%; Moore Bailout 9.375%; and Bada Bing 10.1563%. Endeavour International Corporation and Wise Oil & Gas No. 8, Ltd. are the remaining participants in the wells.
Lease Acquisition: During July, August, September and October 2009, Caza increased its acreage position in the Abo/Wolfcamp play by 135% to approximately 19,260gross acres (3,354 net acres) through the acquisition of acreage around its existing prospect areas.
Mike Ford, CEO and President of the Company, commented:
"We are very pleased to have discoveries with our first two wells in the Abo/Wolfcamp horizontal oil play and will continue acquiring acreage within the play. We hope to report encouraging news regarding flow rates in due course."
For further information please contact:
| John McGoldrick, Executive Chairman, Caza Oil & Gas, Inc | +1 281 363 4442 |
| Michael Ford, CEO, Caza Oil & Gas, Inc. Tim Feather/Richard Baty, Hanson Westhouse Limited | +1 432 682 7424 +44 (0)20 7601 6100 |
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.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.
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" and similar expressions. Information regarding the Lucky Penny 10 State #1, Moore Bailout 11 State #1, Bada Bing 23 State #1 wells and/or future exploration and drilling activities contained in this news release constitutes forward-looking information within the meaning of securities laws.
Implicit in this information, particularly in respect of wells, production, flow rates and test rates are assumptions regarding projected revenue and expenses. Specifically, the Company has assumed that these wells 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, economic, market and business conditions and could differ materially from what is currently expected as set out above. Future flow rates from 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.