Caza plunges as revenue is hit by lower oil and gas prices

15th May 2015 08:34

Shares in Caza Oil & Gas fell over 7% on Friday, after the oil and gas producer said its first quarter revenue fell sharply because of a decline in gas and oil prices.The London-listed group said revenues from oil and natural gas sales for the three months to 31 March, plunged 27% year-on-year to $3.37m (£2.14m) and 30% from the previous quarter, due to lower oil and natural gas prices.The average oil price received by the company decreased 56% to $40.60 per barrel during the period.However, Caza's earnings before interest, tax, depreciation and amortisation jumped 29% to $2.76m, the company said in a statement on Friday.The group's oil and natural gas liquids (NGL) production increased 65% year-on-year in the first quarter to 73,643 barrels over the period, marking a 0.5% hike from the previous three months.Oil and NGL output accounted for 89% of the group's production of oil and natural gas in the first three months of 2015, Caza said."While we have taken the prudent decision to cut back on capital expenditures during this time of low oil prices, many of the Company's Bone Spring properties could deliver acceptable rates of return at current price levels," said group chief executive W. Michael Ford.Caza shares were down 7.27% to 4.29p at 08:59 on Friday.