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24/04/2012

Caza Oil & Gas CEO says he wants to “aggressively” grow reserves

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Additional Information
Market: TSX
Sector: Oil & Gas Exploration & Production
EPIC: CAZ
Latest Price: 0.12  (-9.62% Descending)
52-week High: 0.47
52-week Low: 0.12
Market Cap: 19.36M
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Caza Oil & Gas
www.cazapetro.com

Based in The Woodlands, Texas, Caza Oil & Gas, Inc. is engaged in the acquisition, exploration, development and production of hydrocarbons in the Texas Gulf Coast, South Louisiana, Southeast New Mexico and the Permian Basin of West Texas regions of the United States through its subsidiary, Caza Petroleum. Caza Oil & Gas, Inc. is listing on both AIM, a market operated by London Stock Exchange plc, and the Toronto Stock Exchange.

HansonWesthouse bullish on Caza Oil & Gas after Lucky Penny discovery in New Mexico

6th Oct 2009, 1:09 pm by Andre Lamberti
HansonWesthouse bullish on Caza Oil & Gas after Lucky Penny discovery in New Mexico

House Broker HansonWesthouse remained bullish on Caza Oil & Gas (AIM & TSX: CAZA) after the US focused oil and gas junior confirmed its Lucky Penny 10 State #1 well as a discovery, its first in the Abo/Wolfcamp oil pay in New Mexico with flow test results expected imminently.


Caza has a 12.5% working interest and a 9.375% revenue interest in the Lucky Penny well with Endeavour International (LSE: ENDV, NYSE Amex: END) holding a 56.25% working interest and a 42.1875% net revenue interest and Wise Oil & Gas holding a 31.25% working interest and a 23.4375% revenue interest.


Caza and Endeavour entered participation agreement April 2009, enabling Endeavour to farm in to Caza’s prospects on the basis of paying 100% of Caza’s first well on each prospect in exchange for 75% of Caza’s initial working interest. Endeavour has agreed to fund the drilling of three wells in the Abo/Wolfcamp trend including Lucky Penny, Bada Bing 23 State #1 and Moore Bailout 11 State #1.


The two companies are expected to participate on eight further exploration wells over the rest of 2009 and 2010. The Bada Bing and Moore Bailout are the next to be drilled in this initial programme. HansonWesthouse noted Caza’s cash reserves of US$11.2 million available for development expenditure with the company being “well funded” to participate in this programme with the farm-in agreement applicable to this future drilling activity.


The broker left both its “buy” recommendation for the company and the target prices of 15.6 pence per share unchanged, yet said that the completion of the Endeavour drilling programme, including all development drilling, would add at least 8.5 pence to its valuation, while the recent exploration success made HansonWesthouse confident in Caza’s operational expertise.


The valuation was not upgraded immediately due to the absence of production information, HansonWesthouse said in its note.

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