Texas-based explorer Caza Oil & Gas has had a good result on the Forehand Ranch prospect in New Mexico.
There were good mud log shows for oil and natural gas throughout the Bone Spring formation while drilling the vertical section of the Forehand Ranch 27 State Com No. 1H horizontal well, notably in the Avalon Shale and 1st, 2nd and 3rd Bone Spring Sands, along with shows in the shallower Delaware and Lower Brushy Canyon and the deeper Wolfcamp formations.
Caza has a 54.83% working interest before payout (42.02% net revenue interest) and a 63.00% working interest after payout (48.27% net revenue interest) in the Forehand Ranch 27 State Com No. 1H well.
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 Bone Spring formation in Lea and Eddy Counties, New Mexico, contains multiple potential pay zones for oil and liquids-rich natural gas. Caza's current prospects in the horizontal Bone Spring play are Lynch, Forehand Ranch, Lennox, Copperline, Mad River, Azotea Mesa, Bradley 29, Two Mesas and Quail Ridge.
"We are pleased to have reached total vertical depth on the Forehand Ranch well on schedule. The log and core data have confirmed the presence of multiple potential pay zones containing oil and liquids-rich natural gas," revealed Michael Ford, Chief Executive Officer of Caza.
As for the Copperline prospect, the Caza Ridge 14 State No. 3H horizontal Bone Spring well has been fracture stimulated in twelve stages, ahead of schedule.
The company has already begun initial flow back of the well to recover fluids and hydrocarbons released by the fracture stimulation. Horizontal Bone Spring wells require large fracture stimulations (fracs) and may take up to three weeks post frac to establish a stabilised flow rate, the company explained. Wells on trend usually take up to a week or more before observing meaningful hydrocarbon production during frac fluid recovery. Once a stabilised flow rate has been established, the market will be updated accordingly, Caza divulged.
The shares reacted positively to the update, trading at 10.875p over the lunch-time trading session, up 1.25p on the day.
JH
-
Rightmove rejects £5.6bn takeover bid from Rupert Murdoch’s REARightmove said the offer was "wholly opportunistic and fundamentally undervalued" the FTSE 100 company
-
Renters' Rights Bill: landmark reforms to put an end to no-fault evictionsThe long-awaited housing bill is to be unveiled in parliament on Wednesday - how will it affect you?
