Caza Oil & Gas, Inc. recently completed an acreage swap with Mewbourne Oil Company with covers the Bone Spring formation only, and sets up twelve horizontal Bone Spring locations to be drilled in 2012 and 2013, the company said in an announcement on its website. Under the agreement, Mewbourne will operate the wells.
Drilling for the initial well began April 27 and will measure a total 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.
Caza CEO W. Michael Ford said, “”We are very pleased to be drilling our first horizontal Bone Spring well in New Mexico with Mewbourne. Mewbourne is an accomplished operator with extensive knowledge in this basin, and we are looking forward to working with them on these projects. This will be Caza’s first foray into horizontal drilling in this exciting oil and liquids-rich play. The Quail State well being drilled by Fasken, another highly respected operator, should also provide the Company with valuable information that could be used in Caza’s Bone Spring drilling and completion operations later this year. We have also elected to participate in CML’s proposed plug back operation on the Sombrero property well and hope to complete the well in the San Andres formation later this month.”
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