Caza Oil & Gas reports rise in oil and natural liquids production

Caza Oil & Gas reported an 18 per cent year-on-year increase in oil and natural gas liquids production to 13,820 barrels in the first quarter.

Natural gas production fell 60% to 39,742m cubic feet (mcf) for the first three months, compared to 99,563 mcf for the same period last year, reflecting mechanical issues at a third party operated processing facility in Lea County, New Mexico.

However, the company's production figure in the second quarter should improve as operations have been restored.

Revenues from oil and gas sales dropped 8.0% to $1.3m in the first quarter from $1.4m in 2012.

The company also announced the completion of the Lennox well in the Bone Spring play in New Mexico has started.

Fracking of the Lennox State Unit 32 No. 2H horizontal well began on May 6th. The firm plans to have the well, which last month confirmed multiple potential pay zones, flowing back in the near future.

"I am very pleased with the Company's progress in the Bone Spring play," said Chief Executive Officer, Michael Ford.

"This area has been a primary focus for the company and has the potential to generate material value creation for our shareholders."

Shares rose 2.78% to 9.25p at 15:07 Monday.

RD