Caza Oil & Gas (LON:CAZA, TSE:CAZ) chief executive Michael Ford this morning hailed the "exceptionally good result" from its Copperline Property in Lea County, New Mexico.
Caza Ridge 14, a horizontal well targeting the Bone Spring formation, flowed at a combined rate of 1,021 barrels of oil equivalent a day. This included 844 barrels of crude.
Caza has a 45 per cent working interest and a 35.2 per cent net revenue share in the well.
Ford told investors: "This is an exceptionally good result for Caza's first operated horizontal Bone Spring well.
"We are very pleased with the result and the value created for our shareholders.
"In addition to creating development opportunities associated with the Copperline Property, this result has de-risked a large portion of our Bone Spring acreage in Lea County.
"Production from the Caza Ridge well should significantly increase Caza's oil to gas production ratio, while adding additional cash flow and reserve value to the company."
"Although this is Caza's first operated horizontal Bone Spring well, all three Bone Spring wells that Caza has participated in thus far have been successful.
"We hope to build on this initial success and are currently drilling the horizontal section of our operated Forehand Ranch test well, which should reach total measured depth within the week.
"Once a frac date for this well has been scheduled, we will update the market accordingly."
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.