Caza Oil & Gas, Inc Sees “Excellent” Results From Bone Spring Play

Caza Oil and Gas, Inc (LON: CAZA) continues to create value for shareholders through cost efficiencies.

Mark Stones

Mark Stones (TMFMumbojumbones) joined The Motley Fool in 2014 and initially worked as a writer for Fool.co.uk, before joining the Fool’s analyst programme. Mark earned a BA in English from Loughborough University. Although he spends more time reading annual reports than Russian literature these days, he still appreciates a novelist’s antipathy toward the accepted view, which is a useful attitude when trying to sniff out hidden gems on the stock market. His approach to investing has been largely influenced by the principles of Warren Buffett and Peter Lynch. He also takes a special interest in the work of healthcare companies. Outside of investing, Mark plays guitar, enjoys good writing and has a guilty passion for combat sports.

Published 21 July, 2014 9:49 am BST

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

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.