News

October 07, 2009

Lucky Penny Lives Up To Its Name As Caza Oil & Gas Declares Its First Horizontal Wolfcamp Well A Discovery

When John McGoldrick, executive chairman of US-based Caza Oil & Gas, appeared at June’s oilbarrel.com conference in London, the AIM- and TSX-listed company had already started drilling the first of three back-to-back wells on the Wolfcamp oil trend in the Permian Basin of New Mexico. That first well, the Lucky Penny 10 State-1 horizontal well, which was drilled to a depth of 10,571 feet, has now been completed and declared a discovery.

This is good news for Caza, which has a 12.5 per cent carried working interest and a net revenue interest of 9.375 per cent in the well.  But investors will be happier once flow rates are released: this will happen once fracture fluid has been recovered and oil production has stabilized.

In the past the Wolfcamp trend has delivered initial production of about 30 barrels per day from conventional vertical wells, which would be little to write home about, particularly for a...