Caza's confirms Lennox ready for fracking

US exploration tiddler Caza Oil & Gas has confirmed its Lennox well in New Mexico showed a number of encouraging potential zones for oil and gas.

US exploration tiddler Caza Oil & Gas has confirmed its Lennox well in New Mexico showed a number of encouraging potential zones for oil and gas.

Drilling at the Lennox State Unit 32 2H horizontal well in southeast New Mexico delivered results that contained multiple potential pay zones for oil and liquids-rich natural gas.

AIM-listed Caza's operational update covering drilling activities across its 4,100 net acres in the region confirmed that initial producing well rates continue to improve with technological advances in drilling and fracking designs.

Management stated that the company was "well positioned" in the region, and continued to "exploit opportunities to build on its current acreage position".

To this end, Caza acquired a new 318 acre lease in Lea County to be called the Gateway project with 100% working interest and a 77% net revenue interest and agreed to participate in a proposed drilling into the Delaware formation with fellow regional operator Occidental Petroleum (OXY) at its Roja property, which is currently scheduled for June 2013 and gives Caza a 20% working interest and 16% net revenue interest.

Chief Executive Officer Michael Ford commented that the log results from the Lennox well were in-line with expectations after initial difficulties with the original drilling rig.

"We look forward to scheduling the frac and completing the well in order to bring it online in the near future. Given success, this well will help establish a substantial development program, as the Lennox Unit contains 1,920 acres."

On the Gateway acquisition Ford added: "No reserves were assigned to this property at year-end, because it is too new. However, the company believes the lease has good reserve potential and expects to drill a test well at Gateway during 2013."

"Finally, we are looking forward to participating in the Roja well with OXY. The Delaware is another formation being successfully exploited for oil and liquids-rich natural gas as part of the broader horizontal Bone Spring play. Multiple potential pay zones are what make this play such an exciting investment proposition."

OH

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
5 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

House prices could fall 30%. Should investors be worried about a repeat of 2008?
Investments

House prices could fall 30%. Should investors be worried about a repeat of 2008?

Some analysts are predicting that house prices could fall as much as 30%, which, when compared to the fact that prices have jumped 28% since April 201…
24 Jan 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
27 Jan 2023
Council tax increases 2023 – how much more will you pay?
Tax

Council tax increases 2023 – how much more will you pay?

Your council tax bill will go up in April - we reveal the councils that have confirmed what this year’s increase will be.
23 Jan 2023