Caza Oil & Gas (LON:CAZA, CVE:CAZ) today revealed encouraging progress from its drill activities on the Bone Springs play in New Mexico.
It said that its vertical drilling on the Forehand Ranch prospect has reached target depth, encountering multiple potential payzones, and horizontal drilling is now ready to begin.
The well will be fracture stimulated and tested once the horizontal section is complete.
Meanwhile the frac of the Copperline well is now complete, with twelve stages being carried out, and the fluids are now being recovered before testing can get underway.
"We are pleased to have reached total vertical depth on the Forehand Ranch well on schedule," said chief executive Mike Ford.
"The log and core data have confirmed the presence of multiple potential pay zones containing oil and liquids-rich natural gas.
"We look forward to completing the horizontal section of the well and scheduling a frac job in order to complete the well and bring it on line in the near future."
"We are also pleased to have secured an early frac date for the Caza Ridge well. All twelve stages went off successfully, and we hope to provide post frac production results in the coming weeks."
Caza has a 54.83% stake in Forehand Ranch. The vertical section was drilled to 9,450 feet, and it will be drilled horizontally for a total of 11,961 feet.
The company said there were good mud shows for oil and natural gas throughout this vertical drilling in the Bone Spring formation.
It has 45% of the Copperline prospect. Caza expects it will take around three weeks to establish a stabilised flow rate from the well due to the large fracs that were carried out.
And it explained that the other wells o the same trend usually take around a week before meaningful observations can be made regard potential production rates.
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