CAZA.L Regulatory News (CAZA)

22 Jan 2008 07:30

Caza Oil & Gas, Inc.22 January 2008 22 January 2008 Caza Oil & Gas, Inc. ("Caza" or the "Company") Caza Provides Operational Update Houston, Texas (January 22, 2008) - Caza (CAZA AIM SYMBOL/CAZ TORONTO SYMBOL) ispleased to provide an operational update on the Company's activities inSouthwest Louisiana, South Texas and New Mexico. Production Increase in the Matthys-McMillan #1 Well - The Matthys-McMillan #1well forms part of the "Hite Offset Property" and is located in the Wharton WestWilcox Field, Wharton County, Texas. Following perforation of an additionalzone, the well is currently flowing at a flow rate of 4.6 million standard cubicfeet per day of gas, an increase of approximately 53% over the initial flowrate. The Company is currently assessing this well for fracture stimulation inthe near future. Caza is the operator of, and has a 19.6% working interest(14.4% net revenue interest) in, this well. Alligator Property - Located in Calcasieu Parish, Louisiana, the Bell Minerals #1 Well reached its target depth of 9,400 feet in the Hackberry Section on 16January 2008. The well was then logged but did not encounter hydrocarbons.Information from the well will be used to further evaluate the potential of thearea. Caza has a 70.0% working interest (49.0% net revenue interest) in thiswell. Wilcox 116 Property - Located in Wharton County, Texas, the Jonell Cerny gasunit #1 well commenced drilling on 15 January 2008. Anticipated to take 60 daysto drill, this well is targeting gas in the Deep Wilcox Sands at a total depthof 16,500 feet. The targeted sands are currently producing in the nearbyMatthys-McMillan well. The test well, if successful, will establish numerousdevelopment locations. Caza is the operator of this well and followingcompletion of the well will have a 47.8% working interest (35.8% net revenueinterest) in this well. Lynch Property - Located in Lea County, New Mexico, the Mud Slide Slim "15"Federal Com. #1 commenced drilling on 12 January 2008. Anticipated to take 30days to drill, this well is targeting gas in the middle Morrow formation at adepth of 13,200 feet. The middle Morrow formation produces from wells directlyoffsetting the Caza acreage. Caza has a 40.0% working interest (31.3% netrevenue interest) in this well. Northwest Raptor Property - Located in Lea County, New Mexico. After furtherevaluation, Caza has elected not to participate in the drilling of this propertyand therefore has no remaining interest. In two separate commercial transactions, Caza has purchased participation rightsfrom Austex Enterprises and Midland Oil & Gas, Inc. equal to 25% of Caza'spotential working interest in all projects located under certain Transition Zoneseismic data volumes covering approximately 2,300 square miles located in SouthLouisiana and the Texas Gulf Coast Regions. As a result of the transactions,Caza has increased its potential working interest and would have the controllinginterest in projects derived from these data volumes. Mike Ford, Chief Executive Officer of the Company, commented: "Our first month of life as a public company has been very busy with Cazadrilling three operated wells. While we are naturally disappointed with theresults of the initial well in our Alligator Property, we are currentlyevaluating what this outcome means to the Alligator Property as a whole. We arevery pleased with the production increase at Matthys-McMillan and itsimplications for future drilling in that area. The two exploration wells thatare currently being drilled, the Jonell Cerny gas unit #1 (Wilcox 116 Prospect)and the Mud Slide Slim "15" Federal Com. #1 (Lynch Prospect), are expected toreach total depth in 60 and 30 days, respectively. "In line with our strategy, during 2008 we do not intend to drill any furtherwells on the Alligator Property but intend to mainly focus our efforts on theWharton West Wilcox area." About Caza Caza is engaged in the acquisition, exploration, development and production ofhydrocarbons in the Texas Gulf Coast (on-shore), south Louisiana, southeast NewMexico and the Permian Basin of west Texas regions of the United States ofAmerica 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 +44 (0) 20 7763 2200(Nominated Adviser and Joint Broker) Peter Reilly, Aquila Financial Ltd +44 (0) 20 7202 2601(Financial Public Relations Advisers) 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 byAnthony B. Sam, Vice President Operations of Caza who is a Petroleum Engineerand a member of The Society of Petroleum Engineers. ADVISORY REGARDING FORWARD-LOOKING STATEMENTS - In the interests of providingCaza shareholders and potential investors with information regarding Caza,including management's assessment of Caza's and its subsidiaries' future plansand operations, certain statements contained in this news release areforward-looking statements or information within the meaning of applicablesecurities legislation, collectively referred to herein as "forward-lookingstatements." Forward-looking statements in this news release include, but arenot limited to: future economic and operating performance (including per sharegrowth, cash flow and increase in net asset value); anticipated growth andsuccess of resource plays and the expected characteristics of resource plays;free cash flow which may be generated in 2008 and beyond, and potential uses forsuch free cash flow; anticipated production and sales of oil, natural gas andNGLs 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; anticipatedcapital inflation; anticipated capital and operating cost efficiencies;anticipated growth in hydrocarbon production; forecast cash flow for 2008 andthe anticipated ability to meet guidance targets. Readers are cautioned not to place undue reliance on forward-looking statements,as there can be no assurance that the plans, intentions or expectations uponwhich they are based will occur. By their nature, forward-looking statementsinvolve numerous assumptions, known and unknown risks and uncertainties, bothgeneral 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 futureperiods to differ materially from any estimates or projections of futureperformance or results expressed or implied by such forward-looking statements.These risks and uncertainties include, among other things: volatility of andassumptions regarding oil and gas prices; assumptions based upon the company'scurrent guidance; fluctuations in currency exchange and interest rates; productsupply and demand; market competition; risks inherent in the company's marketingoperations, including credit risks; imprecision of reserve estimates andestimates of recoverable quantities of oil, natural gas and liquids fromresource plays and other sources not currently classified as proved; thecompany's ability to replace and expand oil and gas reserves; the company'sability to generate sufficient cash flow from operations to meet its current andfuture obligations; the company's ability to access external sources of debt andequity capital; the timing and the costs of well and pipeline construction; thecompany's ability to secure adequate product transportation; changes in royalty,tax, environmental and other laws or regulations or the interpretations of suchlaws or regulations; the risk of terrorist threats; risks associated with futurelawsuits and regulatory actions made against the company; and other risks anduncertainties described from time to time in the reports and filings made withsecurities regulatory authorities by Caza. Although Caza believes that the expectations represented by such forward-lookingstatements are reasonable, there can be no assurance that such expectations willprove to be correct. Readers are cautioned that the foregoing list of importantfactors is not exhaustive. Furthermore, the forward-looking statementscontained 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 anyobligation to update publicly or to revise any of the included forward-lookingstatements, whether as a result of new information, future events or otherwise.The forward-looking statements contained in this news release are expresslyqualified by this cautionary statement. The Toronto Stock Exchange has neither approved nor disapproved the information contained herein. This information is provided by RNS The company news service from the London Stock Exchange