US-focused hydrocarbon explorer Caza Oil & Gas has announced that initial production has started at its Forehand Ranch Prospect in Eddy County, New Mexico.
The Forehand Ranch 27 State Com No. 1H horizontal Bone Spring well was fracture stimulated in the second Bone Spring Sand in twelve stages and has been producing under controlled flowback for two weeks, the AIM-listed company said.
Over the past 24 hours, the well recovered hydrocarbons and frac fluids at a gross rate of approximately 1,631 barrels (bbls), producing 170 bbls of oil, 103 thousand cubic feet of natural gas, which equates to 187 bbls of oil equivalent, and 1,444 bbls of frac fluid.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The company owns a 54.83% working interest before payout (42.02% net revenue interest) and a 63% working interest after payout (48.27% net revenue interest) in the Forehand Ranch 27 State Com No. 1H well.
"This is a good result for Caza's first horizontal 2nd Bone Spring well and falls within the Company's matrix for return on investment in the play," said Caza's Chief Executive Officer W Michael Ford.
"In addition to adding cash flow and reserve value, this result has created multiple development opportunities in various potential pay zones associated with the Forehand Ranch Property.We are particularly enthusiastic about the potential associated with the 3rd Bone Spring Sand on the property."
The company also revealed that it has bought two new leases in the Bone Spring play on two new prospects, West Rover and West Copperline.
BC
-
How much should I have in emergency savings?When your boiler breaks or your car won’t start, you can find yourself paying a hefty bill. How much should you have in emergency savings to cover unexpected costs?
-
ISA investments by age: should I invest more in my stocks and shares ISA?Stocks and shares ISAs are a great way to grow long-term wealth, but are they overlooked compared to cash savings? We look the average ISA investment by age and if you should have more.
