HOUSTON, TEXAS — (Marketwired) — 11/12/14 — Caza Oil & Gas, Inc. (“Caza” or the “Company”) (TSX: CAZ)(AIM: CAZA) is pleased to announce a significant acquisition of prospective Bone Spring and Wolfcamp acreage in the southern Delaware Basin, which extends into Texas, and substantially, increases the Company–s current acreage position in the oil and liquids-rich Bone Spring/Wolfcamp Play.
CWEI Farmout Area, Reeves County, Texas: Caza has entered into a farmout and exploration agreement (the “Agreement”) with Clayton Williams Energy, Inc. (“CWEI”), the NYSE-listed independent oil and gas company engaged in the exploration for and production of oil and natural gas primarily in Texas, New Mexico and Louisiana, to jointly develop CWEI–s 14,738 leased net acres in Reeves County, Texas (the “Farmout Area”), subject to the terms of the Agreement. The Farmout Area is on trend with prolific horizontal Wolfcamp wells currently producing in the horizontal Bone Spring/Wolfcamp Play being executed in the southern Delaware Basin by companies including: CWEI, Energen, Shell, Pioneer Natural Resources, Concho Resources and Cimarex Energy among others. Caza and CWEI anticipate a one rig drilling program in the Farmout Area for 2015, beginning with the Initial Commitment Well and the Additional Commitment Wells, as described below.
The key terms of the Agreement are as follows:
W. Michael Ford, Chief Executive Officer commented:
“We are very pleased to announce this sizeable transaction with CWEI. This is an excellent opportunity for Caza to substantially grow its asset base in the Delaware Basin–s exciting Bone Spring/Wolfcamp Play with a company that has a proven track record in the basin. This transaction has the potential to significantly increase Caza–s drilling locations and triple its current net leasehold position in the best oil play in North America.
Caza continues to focus on the Delaware Basin–s oil and liquids-rich plays and continues to find creative ways to acquire additional acreage in the Bone Spring/Wolfcamp Play at or below market rates. The recent East Marathon Road acquisition and this CWEI farmout transaction are good examples that are directly inline with the stated Company strategy.
Current operations on the Igloo 19-2H, the Lennox 32-4H and the Marathon Road 15 B3OB #1H wells are moving ahead. We intend to update the market on these wells later this week in the Company–s quarterly announcement.”
About Caza
Caza is engaged in the acquisition, exploration, development and production of hydrocarbons in the following regions of the United States of America through its subsidiary, Caza Petroleum, Inc.: Permian Basin (Southeast New Mexico and West Texas) and Texas and Louisiana Gulf Coast (on-shore).
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.
In accordance with AIM Rules – Guidance Note for Mining, Oil and Gas Companies, the information contained in this announcement has been reviewed and approved by Anthony B. Sam, Vice President Operations of Caza who is a Petroleum Engineer and a member of The Society of Petroleum Engineers.
ADVISORY STATEMENT
Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Such information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “schedule”, “continue”, “estimate”, “expect”, “excellent”, “may”, “will”, “hope”, “project”, “predict”, “potential”, “intend”, “could”, “might”, “should”, “believe”, “develop”, “test”, “anticipation”, “opportunity”, “looks to be”, “suggests”, “excellent”, “best” and similar expressions. In particular, information regarding the operations of the Company pursuant to Agreement and its results thereunder, the potential or future development of any property, growth of the Company–s asset base, the timing, depth, scope or success of future drilling or completion operations, reserves, anticipated drilling locations, future operating expenses, future flow rates, future sales and potential pay zones contained in this news release constitutes forward-looking information within the meaning of securities laws.
Implicit in this information, are assumptions regarding available funding, the success and timing of drilling operations, rig availability, projected production, projected revenue and expenses, well performance and the satisfaction of the terms and conditions of the Agreement. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual future operations, operating results and economic performance of the Company are subject to a number of risks and uncertainties, including general economic, market and business conditions, well performance and operating risks and could differ materially from what is currently expected as set out above.
For more exhaustive information on these risks and uncertainties you should refer to the Company–s most recently filed annual information form which is available at and the Company–s website at . You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time except as may be required by securities laws.
Contacts:
Caza Oil & Gas, Inc.
Michael Ford, CEO
+1 432 682 7424
John McGoldrick, Chairman
+65 9731 7471 (Singapore)
Cenkos Securities plc
Alan Stewart
+44 131 220 9774 (Edinburgh)
Neil McDonald
+44 131 220 6939 (Edinburgh)
Vigo Communications
Chris McMahon
+44 20 7016 9570