Caza Oil & Gas unveils higher reserves estimates

2nd Dec 2014 10:19

The value of US shale explorer Caza Oil & Gas's reserves was greater than previously expected, the company said citing the most recent audit of the resources which it is targeting.The company's so-called proved developed producing (PDP) reserves increased by 37.3% to reach 1,893.6 million barrels of oil equivalent (Mboe) while its total proved reserves (1P) fell slightly, hitting 4,483.4Mboe, according to the Netherland Sewell & Associates Inc. report which covers the period from 30 April to 30 September 2014.Similarly, the firm's proved plus probable (P2) reserves were now estimated to be 12.8% lower than the previous period.However, said decreases were mostly the result of the sale of the sale of its Wharton County, Texas production together with lower commodity pricing.Furthermore, the value of its 1P reserves was now calculated to be 8.8% greater, as a result of a higher rate of production of oil/liquids. The net present value of the future revenue stream expected to result from the above was now expected to reach $102.3m, versus $94.04m on 30 April.The company's chief executive, William Michael Ford said: "[...] As we continue to drill development wells in the [Bone Spring] play, we anticipate our PDP and 1P reserves will continue to increase as we prove up probable and possible reserves from the 2P and 3P categories."