A US oil and gas company has pulled out of a farm-out and exploration deal with another firm, citing the falling price of oil as a factor in the decision.
Texas-based companies Caza Oil and Gas and Clayton Williams Energy Inc (CWEI) have mutually agreed to terminate their deal to develop the latter's 14,738-acres site in Reeves County, Texas.
Caza Oil and Gas has entered into a farmout and exploration agreement with Clayton Williams Energy Inc (CWEI) for land in the Delaware Basin.
The Houston-based company will jointly develop CWEI’s 14,738 leased acres in Reeves County, Texas.
Both companies anticipate a one rig drilling program in the farmout area in 2015, beginning with the initial horizontal Wolfcamp well.
