Executive Q&A with John McGoldrick, Executive Chairman, Caza (LON:CAZA)
Drake Lawhead (DL) interviews John McGoldrick (JM)
DL: Caza had a busy drilling schedule in 2011. You’ve had a number of successes, but is it fair to say some disappointments as well?
JM: The well on the Arran prospect was a disappointment, but it is important to remember that the data gained from that well is extremely valuable, as it allows us to better correlate our models. Arran tested a new play type and although the result was not what we were hoping for in the short term, it has provided us with a wealth of geological data that is being applied to future efforts. Exploration is a process of pulling together data from various sources, and even though Caza has the benefit of a very large 3D seismic database, there’s no substitute for the real data acquired from drilling wells in a given area.
DL: What are you looking forward to for the rest of the year and into 2012 for Caza?
JM: We are at an interesting point in the evaluation of our projects. Over the summer we have fracced four wells and they are now flowing back. Small E&P companies have to be agile and able to adapt to circumstance. The performance of these wells will help us to refine our efforts and set the direction of the ongoing exploration and development campaign.
Our Louisiana 3D seismic database alone covers approximately 18,000 km2 in some of the most prolific hydrocarbon producing basins in the US. Our current review of this data is progressing well, and I’m looking forward to drilling an exploration well there as early as Q4 2011, with more to follow in 2012.
DL: We’re looking at leadership and corporate governance issues this month in Drillers & Dealers – what, in your opinion, are the most essential qualities an O&G CEO or Chairman ought to possess to manage a successful company?
JM: Resilience. Anyone who has worked in the industry will tell you that exploration has more lows than highs but the aim is to ensure that the cumulative size of the highs is bigger than the costs of the lows. That takes time and perseverance. The other useful quality is being a good communicator, both internally and externally: this includes with staff, with advisors, with…
