Caza Oil & Gas revenues treble

14th Nov 2014 15:59

Increased production volumes from new wells drove Caza Oil and Gas revenues in the third quarter.Third quarter sales rose from $2.6m to $7.2m, which represented a 15% increase on the previous three months.The firm said that revenue for the first nine months of 2014 rose from $4.9m to $18.1m, while oil and natural gas liquid production almost trebled to 87,901 barrels during the third quarter, from 22,958 barrels a year earlier.The figure was a 34% increase from the second quarter when it produced 65,823 barrels."Our production increases and continued success in the Bone Spring and Wolfcamp Play have allowed us more flexibility with our financial options, which should allow us to lower our cost of capital moving forward," said group chief executive Michael Ford.Average net production volumes rose to 1,210 barrels of oil equivalent per day, from 397 barrels of oil equivalent per day in corresponding period in 2013 but the average oil price during the period was $83.04 per barrel, a 21% decrease from the same period in 2013.At the end of the quarter, the company reported a cash balance of $7.4m."Subject to the availability of appropriate financing and dependent upon prevailing commodity prices, the company's objective is to embark on an accelerated and expanded drilling program in the Bone Spring play over the next two years," the firm said in a statement.Caza shares were 5% down to 14.25p at 16:30 on Friday.