Caza Oil & Gas confirms initial production for Lennox

4th Jul 2013 11:49

AIM-listed Caza Oil & Gas said its initial horizontal Bone Spring well on its Lennox Prospect in Lea County, New Mexico has established stabilised flow rates for oil and natural gas.It is producing daily rates of 334 barrels (bbls) of oil and 337 thousand cubic feet of natural gas (Mcf), equal to 390 bbls of oil equivalent (Boe) per day, in each case falling within the company's expectations and typical play parameters.Chief Executive Officer W Michael Ford commented: "This is a good result for the initial test well at Lennox. The detailed completion procedure performed on this well will help determine the future development of this property. The next Lennox well will be the Lennox State Unit 32 #4H, which will target the 3rd Bone Spring sand interval and should commence drilling operations later this year. We also continue to prepare the Gateway and West Copperline Bone Spring prospects for drilling in the near future." The group also provided an operational update on the Caza Ridge development well on its Copperline Prospect, also in New Mexico, in which it has a 58.75% working interest. "The Caza Ridge 14 State #4H well has reached its kick-off point above the 3rd Bone Spring sand interval in the vertical portion of the wellbore. Log data and core samples have been obtained across the Brushy Canyon, Avalon and 2nd Bone Spring sand intervals and have indicated the presence of oil and natural gas across each of these intervals," the group explained in a statement.Ford added: "Additionally, we are pleased to report that the Caza Ridge 14 State #4H well has reached the lateral kick-off point, and log and core data have confirmed the presence of oil and natural gas in the shallower sections of the well. We are currently preparing to drill the lateral section of the well in the 3rd Bone Spring sand, which has proven to be a good producer of oil and natural gas in the offset Caza Ridge 14 State #3H well.""We look forward to completing the 3rd Bone Spring lateral and fracture stimulating this well before bringing it online in the near future."CJ