Production begins at Caza's New Mexico project

US-focused hydrocarbon explorer Caza Oil & Gas has announced that initial production has started at its Forehand Ranch Prospect in Eddy County, New Mexico.

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.

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

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