Caza Oil & Gas, Inc. provided an operational update on the Company's drilling activities in southeast New Mexico.
Bradley 29 Prospect, Eddy County, New Mexico. Caza recently completed an acreage swap with Mewbourne Oil Company ("Mewbourne"), whereby Caza exchanged acreage in its Lynch Property in Lea County, New Mexico, for a position in Mewbourne's Bradley 29 and Two Mesas Properties in Eddy County, New Mexico. The trade covers the Bone Spring formation only, and sets up twelve horizontal Bone Spring locations to be drilled in 2012 and 2013. Under the trade, it was agreed that Mewbourne, one of the foremost operators in the Bone Spring play, would operate the wells.
The initial well in the program, the Bradley "29" Fed Com No. 3H horizontal well, commenced drilling operations on April 27, 2012. The primary objective is the Second Bone Spring sand at approximately 8,221 feet subsurface with a total measured depth of approximately 12,674 feet. Caza has a 20% working interest and a 15% net revenue interest in the Bradley "29" Fed Com No. 3H well.