Caza Oil & Gas (LON:CAZA), the AIM and TSX listed exploration and production group, reported this morning that scheduled drilling had started on the initial test well at the Windham (Wolfberry) prospect in Upton County, Texas. Caza's partner and the operator on this project, Devon Energy, began drilling the Caza 158 #1 test well this week.

The well is designed to drill to approximately 11,500 feet to test the Spraberry and Wolfcamp (Wolfberry) formations and should take approximately 35 days to drill. The prospect covers approximately 1,318 net acres and, given success, could initially be developed on 80 acre spacing units. Devon can earn 75% of Caza's 100% participation interest in the well under an exploration agreement between the parties. After completion of the well, Devon will have the right to participate for its 75% interest in all operations associated with the property, and Caza will participate for its remaining 25% interest.

W. Michael Ford, Caza's chief executive, said: “We are very pleased to announce the commencement of drilling operations for the initial well on the Windham prospect. This is an oil project with good upside potential for Caza. We are also delighted to have an experienced operator in Devon leading the project.”

In August, Caza reported a discovery in its O.B. Ranch #1 well on the Bongo prospect in Wharton County, Texas. Logging results and shows while drilling indicated that hydrocarbon-bearing sands were encountered in the Eocene, Cook Mountain sand formation between 12,400-12,900 feet and represent a potentially significant discovery of natural gas and natural gas condensate. High resolution electric log analysis indicated the well encountered in excess of 100 feet of net potential pay.
Completion of the well will involve perforating the wellbore across multiple intervals in the Cook Mountain and flow-testing the well.

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