22 Mar 2011 07:00
March 22, 2011
Caza Oil & Gas, Inc.
CAZA OIL & GAS PROVIDES AN OPERATIONAL UPDATE
ON ARRAN PROSPECT/MARIAN BAKER #1 WELL
HOUSTON, TEXAS (Marketwire - March 22, 2011) - Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX: CAZ) (AIM: CAZA) has announced today that the Marian Baker #1 well (the "Well") on the Arran prospect in Acadia Parish, Louisiana, was drilled to a total depth of 15,462 feet on March 20, 2011.
Caza has analyzed data collected from the Well. Although several sand sections exist throughout the wellbore, the log data indicates that the targeted Middle Frio section between 12,500-15,462 feet has extremely low porosity and permeability. The shallower sands in the Upper Frio sections between 9,600-12,200 feet, which produce in the immediate area from the Midland Field, appear to be wet at this location. However, based on log data, the Company has reason to evaluate these shallower sands for additional potential across its current acreage block. After determining that none of the sands are likely to be productive at commercial rates, the Company has sought approval from its partners in the Well to proceed with plug and abandonment procedures.
Caza had a 25% working interest before casing point in the Marian Baker #1 well. The Well was drilled on time and within the estimated dry hole costs.
Following its release of yearend reporting documents later this week, Caza will be making further operational announcements in the near future regarding plans for its other projects including: Bongo/O.B. Ranch development, Windham Wolfberry development and additional exploratory projects (including updates on our future south Louisiana projects such as Tiree and Lewis).
Mike Ford, Chief Executive Officer of the Company, commented:
"Although results on the Marian Baker #1 well are disappointing, it is important to note that because very little subsurface data exists in this area at these depths, Caza expects that the data collected while drilling the well will be valuable as we define additional high-value exploration prospects in this area. Additionally, the Company will continue using a significant portion of the funds from the equity raise in November 2010 on development and exploratory drilling in 2011. Our cash reserves should have the Company well placed to execute a strategy of revenue and reserve growth throughout 2011."
For further information, please contact:
Caza Oil & Gas, Inc.
Michael Ford, CEO +1 432 682 7424John McGoldrick, Chairman +1 832 573 1914/+44 7796 861 892
www.cazapetro.com
Cenkos Securities plc
Jon Fitzpatrick +44 20 7397 8900Beth McKiernan +44 131 220 6939
Tavistock Communications
Jonathan Charles +44 20 7920 3150
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", "development", "exploratory", "high-value" and similar expressions. Information regarding the Arran Prospect, Marian Baker #1 well, Bongo/O.B. Ranch development, Windham Wolfberry development, exploratory projects, future south Louisiana projects including Tiree and Lewis, the value of data obtained from historical drilling operations, future exploration and drilling activities (including timing thereof) and the filing time and contents of Caza's year-end reports contained in this news release constitutes forward-looking information within the meaning of securities laws.
Implicit in this information, particularly in respect of "Bongo/O.B. Ranch development", "Windham Wolfberry development", "exploratory projects", "future south Louisiana projects including Tiree and Lewis","positive results", and "development and exploratory drilling" are assumptions regarding drilling, rig availability, projected revenue and expenses and well performance. Specifically, the Company has assumed that these agreements, prospects, wells and/or activities 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 economic, market and business conditions and could differ materially from what is currently expected as set out above.
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.