Caza draws down more debt to continue Bone Spring momentum

2nd Jan 2014 09:58

AIM-listed Caza Oil & Gas has drawn down 10m dollars of debt to continue encouraging drilling momentum along its West Copperline property on the Bone Spring play in New Mexico.Having hit 1,000-barrel-per-day oil at one West Copperline well in November, Caza said it had contracted a rig to drill two horizontal Bone Spring development wells, with one begun on New Year's Day and another to follow soon. "Given success, production facilities are already in place on the West Copperline property, which should allow both oil and natural gas sales to begin straight away upon completion of the wells," it said. The $10m dollar drawdown is an advance on a $50m agreed purchase of senior secured notes by Apollo Investment Management.Chief Executive Officer Michael Ford added: "Using our existing funding arrangements, we made significant progress in 2013, laying the groundwork for continued success in the Bone Spring play in Lea and Eddy Counties, New Mexico. "During this initial Bone Spring drilling phase, we have added material production and cashflow to the company. We have also been able to identify properties with reservoir characteristics that should continue this trend in 2014, beginning with those mentioned in this announcement." OH