HOUSTON, TEXAS--(Marketwire - Sept. 5, 2008) - Caza (TSX:CAZ)(AIM:CAZA) is pleased to provide an operational update on the Company's activities in Upton, Duval and Wharton Counties, Texas.
Glass Ranch Property - Upton County, Texas, the Glass Ranch B #3 well has successfully encountered hydrocarbons. The well, operated by Momentum Energy Corporation of Midland, Texas, reached a total depth of 10,426 feet on August 21, 2008. Electric logs indicated multiple potential pay sands in the Wolfcamp and Spraberry formations. Completion operations have commenced and fracture stimulation is planned for the near future. Following the success, the rig is being moved to an offsetting location to spud the Glass Ranch A #3 well.
Caza currently has a 50.0% working interest and a corresponding 38.54% net revenue interest before payout of the well, which will change after payout to an estimated 47.41% working interest and an estimated 35.78% net revenue interest.
Rosita Creek Property - Duval County, Texas, the Perez No. 1 well reached its target depth of 3,616 feet in the Jackson Bar Sands formation on August 27, 2008. The well was logged but did not encounter hydrocarbons. The capital outlay for this shallow test was not material, and the information from the Perez No. 1 well will help to further evaluate the shallow drilling potential of this area.
Caza is the operator of this well and has a 65.0% working interest and a corresponding 52.0% net revenue interest.
Wilcox 116 Property - Wharton County, Texas, the Jonell Cerny Gas Unit #1 well, as previously announced on August 4, 2008, was completed in the Yegua formation and had been awaiting fracture stimulation. The well was fracture stimulated on August 25, 2008. Initial gross rates are approximately 40 barrels of oil per day from perforated intervals between 10,966 and 10,991 feet. Caza is evaluating further opportunities to access additional Yegua intervals.
Caza is the operator of this well and has a 27.8% working interest and a corresponding 20.9% net revenue interest.
John McGoldrick, Executive Chairman of the Company, commented:
"The Glass Ranch B #3 is the third of four planned wells on our Glass Ranch property. In the event of success on both the Glass Ranch A #3 well and the planned stimulation procedures on all four Glass Ranch wells, we may opt to drill two additional wells on this property in the near future.
