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UPDATE: Caza Oil & Gas revenues increase 112 percent for the second quarter

Published: 10:02 15 Aug 2011 EDT

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Adds broker comments....

Revenues from the sale of oil and gas increased 112 percent for the three months to June 30, revealed Caza Oil & Gas (LON:CAZA, TSE:CAZ) today.

Sales stood at US$843,836 - up from US$398,883 in the same period in 2010 - due to additional wells brought on stream, said the firm as it provided its second quarter results along with an operational update.

Production  increased 32 percent to 18,130 barrels of oil equivalent (Boe) in the period compared to 13,712 Boe last year, it said.

As at June 30 the firm had cash of US$24,533,451 compared to US$9,375,345 last year attributable to a placing announced in November last year.

Chief executive Michael Ford said he was pleased with the progress made in 2011.

"Caza has continued to progress a busy work program, which should add further production, reserves and cash flow to the solid platform that we have created through our endeavours to date," he said.

"Revenues have materially risen due to increased oil and gas production levels and a supportive price environment.

"As we add production through our exploration and development campaign, the company and the shareholders should continue to benefit."

Running through the operational highlights, Caza pointed out that the O.B. Ranch No.2 development well in Wharton County, Texas, where drilling commenced in May, had now been fracture stimulated and been placed on an extended well test.

The Caza Elkins 3401 well in Texas and the Caza Elkins 3402 well are both currently being flowed back in order to clean up the fracture fluids and the firm will update the market once initial flow rates have been established for each well.

Meanwhile, the Caza 158 No.3 well on the Windham property reached its target depth of 9,824 feet in June this year and the company chose to participate in the operator's proposal to complete the well.

The Caza 158 No.3 was the fourth well drilled and completed on the property. Caza 158 No.1, 158 No.2 and 162 No.1 wells are currently at various stages in their respective fracture stimulation programs, but are all producing oil and natural gas, added the company.

Andrew Matharu, from broker Westhouse, said that today's positive results from Caza along with the addition of new production wells in the coming months bode well for revenue and production growth.

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