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Caza kicks off production at Eland property

Wednesday, July 02, 2008

Caza, the US-based oil and gas group, has completed the exploratory well on its Eland property in Wharton County, Texas, and sales of gas from the well are now being delivered into a local gas gathering facility.

The Hinton #1501 well at Eland was recently drilled to a total depth of 6,712 feet and is currently producing 603 thousand cubic feet of natural gas per day.

Caza is the operator of this well and has a 34.14% working interest and a corresponding 26.03% net revenue interest.

Last week Caza got shareholder approval for a £11.5 million share placing. The new cash is set to be used to fund the company's exploration and drilling programmes in South Texas, West Texas and the US Gulf Coast and to acquire additional exploration acreage.

John McGoldrick, Caza’s executive chairman, noted: “This well is part of our ongoing exploration and development efforts in Wharton County, Texas. In addition, following our successful fundraise last week, we plan to increase our activities in other focus areas as well, notably southeast New Mexico and the Permian Basin.”






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