Shares of Caza Oil and Gas (LSE: CAZA) increased by 4% during early trade after the Texas-based energy company provided an update on drilling activity at the Bone Spring play in
The 4H development well at the West Copperline property reached the intended total measured depth of approximately 16,015 feet and production rates have been stable. The well produced at a peak 24 hour gross rate of 1,598 barrels of oil equivalent (BOE), which consisted of 2.27m cubic feet of natural gas as of 16 July. Facilities are already in place for the sale of oil and natural gas at the property.
The 27-2H well at Gramma Ridge, which was drilled to the intended measured depth six days ahead of schedule, should be ready to be fracture stimulated toward the end of July. A further update will be provided to the market in the coming weeks once the well has been completed.
The chief executive, W. Michael Ford, commented:
“As we drill additional wells in the [Bone Spring] play, we continue to refine our operations. This has resulted in efficiencies that have allowed us to drill wells faster and cheaper, which improves the economics of each well. These subtle changes continue to increase our success and cost efficiency in the play, which creates additional value for the Company and our shareholders.”
Caza Oil and Gas has increased 155% since January, and I’ll leave it to you to decide whether the time to buy has passed.
