Caza (LON:CAZA) , the US based oil and gas group, reported this morning that development drilling was underway the Windham prospect in Upton County, Texas. Devon Energy, the well operator, commenced drilling of the Caza 158 #2 well on January 23, 2011. The well is designed to drill to a total depth of approximately 11,100 feet to test the Spraberry, Wolfcamp, Penn and Atokaformations and should take approximately 35 days to drill. The prospect covers approximately 1,318 net acres and should initially be developed on 80 acre spacing.

Between September and October last year, the Caza 158 #1 and Caza 162 #1 wells both encountered multiple pay zones and both wells are currently in the completion phase, which requires multiple fracture stimulations. Caza currently has a 25.0% working interest and a corresponding 18.75% net revenue interest in all three wells. The Caza Oil & Gas share price rose by 4% to 49.75p on today’s news.

W. Michael Ford, Caza’s chief executive, said: “We are pleased to announce the commencement of development operations on the Windham prospect. The ongoing completion operations on the first two wells are encouraging, and we look forward to the continued development of this project.”

Earlier this month, Caza kicked off drilling work on its Arran Prospect in Acadia Parish, Louisiana. The Marian Baker #1 well is the initial test well on Arran, which Caza regards as one of the most significant of a new wave of prospects that have been identified during re-analysis of its vast 3D seismic data banks. In an interview with Stockopedia in October, Caza’s chairman, John McGoldrick, said the company had estimated something in the region of 250 billion cubic feet of gas plus liquids at Arran.

Unlock the rest of this article with a 14 day trial

Unlock with Email
Unlock with Google

Already have an account?
Login here