Caza Oil & Gas cheers with positive result on Gramma Ridge test well

29th May 2014 13:24

AIM-listed Caza Oil & Gas has delivered good news about the Gramma Ridge property in New Mexico, saying the test well has recorded a peak 24-hour gross rate of 830 barrels of oil and 4.63m cubic feet of natural gas. Oil from the well, in which Caza holds a 52.5% working interest, is already being sold and natural gas is expected to start flowing to sales in the near future.Chief Executive Michael Ford said the group was "extremely pleased" with the result. "Although the Gramma Ridge property is located in Lea County, New Mexico, this test well was a step out from our recent successes at the Marathon Road and West Copperline properties, which makes this result even more exciting and continues the company's strong momentum in the Bone Spring play."We have again been able to demonstrate the significant upside to be realised from stacked pay intervals in this play, as log and core data from the Gramma Ridge well suggest the 3rd Bone Spring Sand is only one of six potential pays present on this property for future development. We are very happy to continue the trend of creating significant shareholder value with this exceptional result."The share price leapt 23.09% to 20.92p by 13:32. NR