Caza Oil and Gas has acquired additional acres of land in New Mexico.
The development comes after an exploration and development agreement with a “large independent company” to lease the Texas exploration business 480 acres in the area. The property will be known as East Marathon Road due its proximity to the firm’s Marathon Road premises.
Under the contract Caza will pay 100% of the costs attributable to the other company’s 60% working interest in the property for drilling, completing and equipping the well through production facilities to earn a 30% working interest in the 19-2H well, which is planned as horizontal 3rd Bone Spring test well.
William Ford, chief executive, of Caza said: “We are very pleased to announce the recent acquisition of the East Marathon Road lease and anticipate drilling operations to commence soon on the property.
“We are also happy to report that the actual peak rate on the Broadcaster well was higher than the rate previously announced, and we are equally pleased with the excellent performance of the well through the first month of production. We anticipate drilling of the second Broadcaster well to commence in late Q4 2014.”
The well is producing a 25 day average gross rate of 1,696 barrels of oil equivalent, which is made of 1,364 barrels of oil and 1.99 million cubic feet of natural gas, according to the company.
Caza Oil & Gas shares were down 1.6% at 18.70 pence Thursday morning.
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