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
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.
Top 10 stocks with highest growth over past decade - from Nvidia, Microsoft to Netflix, which companies made you the most money?
We reveal the 10 global companies with the biggest returns since 2013. One firm has posted an astonishing 9,870% return, meaning a £1,000 investment would now be worth almost £82,000.
By Ruth Emery Published
BoE: Millions of mortgage borrowers will be hit with higher repayments next year
News Higher interest rates are yet to fully hit households and monthly mortgage repayments will rise between £200 and £1,000 – how much will your home loan go up by?
By Marc Shoffman Published