Log and seismic data have previously indicated that the Yegua interval could be productive in the well, which prompted Caza to perforate at a depth of nearly 9,500 ft (feet) in the Yegua sands. Caza then completed the well in the Yegua sands and performed fracture stimulation.
Since the frac was completed, the well has been producing a gross average of 146 barrels of condensate and 1.1 mmscf (million cubic feet) of natural gas per day.
Caza was encouraged by the results, saying they highlighted the well’s potential for production from multiple sands in the area, reducing its exploration risk and providing further exploration and development opportunities on its leases.
The company is now planning to install permanent production equipment, including a gas lift system in hopes to increase current production levels.
Caza has a 19.61% working interest and a 14.32% net revenue interest in the well.
Earlier this month, the company saw its share price double after logging results from its OB Ranch 1 well on the Bongo field showed the company hit a pay zone measuring more than 100 feet containing gas and gas liquid at depths of between 12,400 and 12,900 feet.
The gas was found in the Cook Mountain sands, while Yegua appeared to be holding additional high-value potential.
Caza’s strategy differs from that of other companies as instead of acquiring exploration acreage and commissioning expensive seismic, Caza struck a deal with specialist seismic contractors to get cheaper access to seismic data. Caza chairman John McGoldrick has said his company has “probably the biggest database of just about any independent”.
As at June 30, the group had cash of US$9.3 million, which it said was enough to meet its current needs.
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