321  0 Kommentare Caza Oil & Gas Announces Farmin and Provides Operational Update

HOUSTON, TEXAS--(Marketwired - Oct. 9, 2014) - Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX:CAZ)(AIM:CAZA) is pleased to announce the acquisition of additional acreage in the heart of the Bone Spring Play and to provide an operational update on the following properties and wells.

East Marathon Road Property, Lea County, New Mexico: Caza has entered into an exploration and development agreement (the "Agreement") with a large independent company (the "Participant") to acquire a lease comprising 480 gross acres in the heart of the Bone Spring Play. The property, which will be referred to as East Marathon Road because of its close proximity to the Company's Marathon Road Property, is on trend with some of Caza's very prolific producing wells including: Marathon Road 15 PA Fed #1H, West Copperline 29 Fed #4H and Broadcaster 29 Fed #3H wells. Caza was able to utilize its contracted rig on short notice to prevent the lease from expiring, thereby securing the transaction and assuming operatorship over the entire property. The initial well will be named the Igloo 19 State #2H (the "19-2H well") and is planned as a horizontal 3^rd Bone Spring test well. The rig used to drill the Company's Lennox 32-4H well is currently being moved to the location. Caza should commence drilling operations within the week. The 19-2H well has been slotted ahead of the Gramma Ridge 27 State #4H horizontal Bone Spring development well with the intention of saving the expiring lease.

Under the terms of the Agreement, Caza is providing one hundred percent (100%) of the costs attributable to the Participant's sixty percent (60%) working interest in the property for drilling, completing and equipping the well through production facilities to earn a thirty percent (30%) working interest in the lease and property. All costs and expenses thereafter will be borne on a heads-up basis (Caza 30% and Participant 30%). The remaining forty percent (40%) interest in the lease and property is owned by participating third parties. Caza will maintain operations on all subsequent wells drilled on the property. The anticipated cost to carry the Participant's interest through production facilities in the 19-2H well is equivalent to the fair market value for leases in the immediate area. After the initial carry, Caza will have a 30% working interest (24% net revenue interest) in the 19-2H well and the East Marathon Road Property.