Well it’s been a mixed week for Caza Oil & Gas. Investors and Traders alike headed for the door as Caza plugged and abandoned the Mariana Baker#1 well on their Arran prospect. The share price plummeted by aprox’ 40% at one point. They are now trading well below the 42p placing price of November 15th 2010.
I keep looking at the current price and can’t help thinking that this is very good value considering the company as a whole. They are well run and have an excellent team in place. Investors need to realise that as part of the evolution of any company there will be plug and abandonments. Such is the way of oil exploration and production it’s 3 steps forward two steps back; the Caza progression taken in full is forward. Good news last month that the Caza 158 #2 well in Upton County, Texas, had encountered multiple potential pay sands in the Clearfork, Spraberry, Wolfcamp, Strawn and Atoka formations, Caza have a 25% working interest. The O.B. Ranch #1 well on the Bongo Prospect in Wharton County, Texas was placed on production on 13 December 2010, THE THIRD QUARTER REULTS RELEASED 15th November 2010 make interesting reading and are full of solid information. Micheal Ford (ceo) is rumoured to be very pleased with recent operational results, and expects future production to increase after recent declines. “Our strategy of acquiring additional interests in our large, high-impact projects will expose Caza to numerous development opportunities along with significant reserves, if successful, which will provide a platform for measurable growth. We look forward to the opportunities that lie ahead.” They are operating out of the USA, the infrastructure is there and they are a producing oiler with assets on production, funds in place and a strategy to match it. The Junior oils trust has just increased its stake to 6.7%.( After Mariana result!) No doubt some-where along the way they will have further disappointments but they they will certainly have more success’s as planned drills with further asset acquistions come to the fore. A very well run company and a good investment for future growth. They will rise again over time and we’ll be at 50p once again as the Caza Train gets going! Good opportunity here but please research.