Caza Oil & Gas (LON:CAZA,TSE:CAZ) received a strong endorsement from one of its major shareholders after a disappointing week for the shares.
This morning Caza revealed that its second largest shareholder, The Junior Oils Trust bought 1.4 million shares on Wednesday (September 28).
The specialist unit trust now owns 16.4 million shares, or 9.97 per cent of company.
On AIM Caza's shares were up around 8 per cent this morning trading at 10.625 pence each.
However in the context of the whole week the shares are down 25 per cent. On Wednesday the group released a mixed drilling report. Bearish investors latched onto the disappointing outcome of the latest well at OB Ranch, in Texas.
However, Caza chairman John McGoldrick told Proactive Investors that the reaction was ‘very harsh’ and a better-than-expected 88 per cent hike in production had been overlooked.
“Investors seem to have focused in on the disappointing news from OB Ranch versus the success from our other projects,” McGoldrick said.
“There is no doubt the OB Ranch results are a little disappointing but having said that, the wells are commercial, and there’s other formations behind pipe, such as the Frio and Yegua, that haven’t been tested yet.”
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