Exploration & Production | Capital Markets | Private Equity Activity

Caza Oil & Gas Increases Reserves from Bone Spring Success

Email    |    Print    |    Bookmark

You Need to login first

   |    Monday,June 09,2014

Caza Oil & Gas, Inc. has provided an increase in reserves in the current year as a result of its successful development drilling program in the Bone Spring formation since December 31, 2013.

W. Michael Ford, Chief Executive Officer commented: "We are pleased to provide these updated reserve figures. The increase in 1P reserves is a result of our successful development drilling program in the Bone Springs play. As we continue to drill development wells in the play, we anticipate our 1P reserves will continue to increase as we prove up probable and possible reserves from the 2P and 3P categories."

Total Net Reserves:

In the Company's latest reserves report as at April 30, 2014, prepared by Netherland Sewell & Associates, Inc., total proved reserves (1P) have increased to 4,875 Mboe, representing an increase of approximately 10% from December 31, 2013.

Small gains in the Company's proved plus probable (2P) and proved plus probable plus possible (3P) reserves were also recorded as a result of the Company's successful development drilling program during the period.

Net Bone Spring Reserves:

The Company currently has 21 gross (4.6 net) wells producing from the Bone Spring formation.

The Company's Bone Spring properties have been assigned approximately 4,215 Mboe of proved reserves in the Reserves Report (3,727 Mboe as at December 31, 2013, representing an increase of 13.1% in the reserves attributed to these properties).

The Reserves Report has also assigned approximately 18,020 Mboe of 2P reserves and approximately 35,080 Mboe of 3P reserves to these properties (17,602 Mboe of 2P reserves and approximately 34,600 Mboe of 3P reserves as at December 31, 2013).

The following tables describe the increase in the Company's net reserves and associated net present values from December 31, 2013 to April 30, 2014.