Caza Oil & Gas has executed an exploration agreement with Devon Energy Production to jointly test and develop Caza's Windham Wolfberry prospect in Crane and Upton counties, Texas, covering approximately 1,318 net acres.
The agreement provides terms whereby Devon can earn 75% of Caza’s 100% participation interest in the initial well. After completion of the initial well, Devon will have the right to participate for its 75% interest in all operations associated with the property, and Caza will participate for its remaining 25% interest.
Michael Ford, CEO of Caza, said: “We are very pleased to announce this joint project with Devon. This alliance fits with our strategy to reduce single project exposure through farm out arrangements and to increase the number of projects drilled.
“If successful, the Windham Wolfberry prospect will open up numerous development locations for oil. We plan to drill this prospect in the third quarter of 2010.”
Caza is engaged in acquisition, exploration, development and production of hydrocarbons in the Texas Gulf Coast (on-shore), south Louisiana, southeast New Mexico and the Permian Basin of West Texas regions of the US through its subsidiary, Caza Petroleum.