Caza Oil & Gas signs deal over 430 more Bone Spring acres

9th Oct 2014 13:05

Texas-based Caza Oil & Gas has announced the acquisition of further land in the "highly active" heart of the Bone Spring shale play and a higher peak rate on its Broadcaster well.The company has signed an exploration and development agreement with "a large independent company" to acquire a lease over 480 gross acres of the East Marathon Road lease.Chief executive W. Michael Ford said Caza anticipated drilling operations to commence soon on the property."This is a highly active area in the Bone Spring Play that will hopefully generate good results for the company and our shareholders," he said.Under the terms of the agreement, Caza is providing all costs attributable to the owner's 60% working interest in the property for drilling, completing and equipping the well through production facilities to earn a 30% working interest in the lease and property.Ford also revealed that the peak rate on the Broadcaster well, also in the Bone Spring area, was higher than the rate previously announced.Broadcaster produced at a 24-hour gross rate of 2,621 barrels (bbls) of oil equivalent, comprised of 2,062 bbls of oil and 3.36m cubic feet of gas, with a gross 24 hour peak rate of 2,830 bbls of oil equivalent.Ford said management anticipated drilling of the second Broadcaster well late in the fourth quarter.