5 Sep 2008 07:00
September 5, 2008
Caza Oil & Gas, Inc. ("Caza" or the "Company")
Glass Ranch, Rosita Creek and Wilcox 116 Properties
Operational Update
Houston, Texas (September 5, 2008) - Caza (AIM: CAZA & TSX: CAZ) is pleased to provide an operational update on the Company's activities in Upton, Duval and Wharton Counties, Texas.
Glass Ranch Property - Upton County, Texas, the Glass Ranch B #3 well has successfully encountered hydrocarbons. The well, operated by Momentum Energy Corporation of Midland, Texas, reached a total depth of 10,426 feet on August 21, 2008. Electric logs indicated multiple potential pay sands in the Wolfcamp and Spraberry formations. Completion operations have commenced and fracture stimulation is planned for the near future. Following the success, the rig is being moved to an offsetting location to spud the Glass Ranch A #3 well.
Caza currently has a 50.0% working interest and a corresponding 38.54% net revenue interest before payout of the well, which will change after payout to an estimated 47.41% working interest and an estimated 35.78% net revenue interest.
Rosita Creek Property - Duval County, Texas, the Perez No. 1 well reached its target depth of 3,616 feet in the Jackson Bar Sands formation on August 27, 2008. The well was logged but did not encounter hydrocarbons. The capital outlay for this shallow test was not material, and the information from the Perez No. 1 well will help to further evaluate the shallow drilling potential of this area.
Caza is the operator of this well and has a 65.0% working interest and a corresponding 52.0% net revenue interest.
Wilcox 116 Property - Wharton County, Texas, the Jonell Cerny Gas Unit #1 well, as previously announced on August 4, 2008, was completed in the Yegua formation and had been awaiting fracture stimulation. The well was fracture stimulated on August 25, 2008. Initial gross rates are approximately 40 barrels of oil per day from perforated intervals between 10,966 and 10,991 feet. Caza is evaluating further opportunities to access additional Yegua intervals.
Caza is the operator of this well and has a 27.8% working interest and a corresponding 20.9% net revenue interest.
John McGoldrick, Executive Chairman of the Company, commented:
"The Glass Ranch B #3 is the third of four planned wells on our Glass Ranch property. In the event of success on both the Glass Ranch A #3 well and the planned stimulation procedures on all four Glass Ranch wells, we may opt to drill two additional wells on this property in the near future. We are very pleased with the results of the program thus far, and given continued success anticipate expanding our lease position throughout this trend."
About Caza
Caza is engaged in the acquisition, exploration, development and production of hydrocarbons in the Texas Gulf Coast (on-shore), south Louisiana, southeast New Mexico and the Permian Basin of west Texas regions of the United States of America through its subsidiary, Caza Petroleum, Inc.
| For further information contact: | |
| John McGoldrick, Executive Chairman, Caza Oil & Gas, Inc. | +1 281 363 4442 |
| Nick Naylor / Jamie Boyd, Noble & Company Limited (Nominated Adviser and Joint Broker) | +44 (0) 20 7763 2200 |
| Peter Reilly, Aquila Financial Ltd (Financial Public Relations Advisers) | +44 (0) 118 979 4100 |
www.cazapetro.com
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 - In the interests of providing Caza shareholders and potential investors with information regarding Caza, including management's assessment of Caza's and its subsidiaries' future plans and operations, certain statements contained in this news release are forward-looking statements or information within the meaning of applicable securities legislation, collectively referred to herein as "forward-looking statements." Forward-looking statements in this news release include, but are not limited to: future economic and operating performance (including per share growth, cash flow and increase in net asset value); anticipated growth and success of resource plays and the expected characteristics of resource plays; free cash flow which may be generated in 2008 and beyond, and potential uses for such free cash flow; anticipated production and sales of oil, natural gas and NGLs in 2008; anticipated impact and success of Caza's price hedging strategy, if any; anticipated costs; anticipated prices for oil and natural gas; anticipated capital investment in 2008 and the allocation thereof; anticipated capital inflation; anticipated capital and operating cost efficiencies; anticipated growth in hydrocarbon production; forecast cash flow for 2008 and the anticipated ability to meet guidance targets. Statements regarding flow rates in this news release are current only as of the date hereof. Future flow rates 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 in this news release.
Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause the company's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things: volatility of and assumptions regarding oil and gas prices; assumptions based upon the company's current guidance; fluctuations in currency exchange and interest rates; product supply and demand; market competition; well flow rates and the hydrocarbons ultimately recoverable from wells, operating risks, water encroachment, risks inherent in the company's marketing operations, including credit risks; imprecision of reserve estimates and estimates of recoverable quantities of oil, natural gas and liquids from resource plays and other sources not currently classified as proved; the company's ability to replace and expand oil and gas reserves; the company's ability to generate sufficient cash flow from operations to meet its current and future obligations; the company's ability to access external sources of debt and equity capital; the timing and the costs of well and pipeline construction; the company's ability to secure adequate product transportation; changes in royalty, tax, environmental and other laws or regulations or the interpretations of such laws or regulations; the risk of terrorist threats; risks associated with future lawsuits and regulatory actions made against the company; and other risks and uncertainties described from time to time in the reports and filings made with securities regulatory authorities by Caza.
Although Caza believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned that the foregoing list of important factors is not exhaustive. Furthermore, the forward-looking statements contained in this news release are made as of the date of this news release, and, except as required by law or regulation, Caza does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.