US-focused exploration firm Caza Oil and Gas has secured more than £6million to fund development drilling at the West Copperline property in New Mexico’s Bone Spring formation.
The £6million advance was secured as part of a note purchase agreement with Apollo Investment Corporation.
Caza today said the funds would be used to fund development drilling at the West Copperline property following the recent success of a recent test well at the site.
A rig has been contracted to drill two horizontal bone spring development wells at the site. Caza has a 62.5% working interest in the wells.
“Using our existing funding arrangements, we made significant progress in 2013, laying the groundwork for continued success in the Bone Spring play in Lea and Eddy Counties, New Mexico,” said chief executive W. Michael Ford.
“During this initial Bone Spring drilling phase, we have added material production and cashflow to the company. We have also been able to identify properties with reservoir characteristics that should continue this trend in 2014.”