Caza Oil & Gas, Inc. (Caza) is pleased to provide an operational update on the Bradley 29 Prospect in Eddy County, New Mexico.
The Bradley "29" Fed Com No. 3H horizontal well reached total measured depth of approximately 12,690 feet in early June 2012, was successfully fracture stimulated in the 2nd Bone Spring sand on June 14th and is flowing back hydrocarbons and frac fluids at a gross rate of approximately 900 barrels (bbls) per day. The Well has averaged 361 bbls of oil and 524 thousand cubic feet of natural gas (Mcfg) per day over the past seven days, which is 449 bbls of oil equivalent (Boe). The peak rate day to date was 399 bbls of oil and 521 Mcfg, which equals 486 Boe, and 488 bbls of fluid. As the Well cleans up, the ratio of hydrocarbons to frac fluids continues to climb, which is expected, and this may also translate into higher producing rates for oil and gas once the majority of the frac fluid is recovered. Caza has a 20% working interest and a 15% net revenue interest in the Well.
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, Bradley 29, Two Mesas, Azotea Mesa and Quail Ridge. The Company has acquired approximately 4,000 net acres in the play to date.
W. Michael Ford, Chief Executive Officer commented: "We are very pleased with the successful results from the Bradley well. The producing rates are as predicted and will increase Caza's oil to gas production ratio, while adding additional cash flow and reserve value. The success at Bradley is a good start for Caza in the horizontal Bone Spring play, and the predictable nature of the play bodes well for Caza's future Bone Spring projects.