Caza Oil & Gas has said that multiple potential pay sands have been encountered in the Devon Energy operated Caza 158 #1 well in Upton County, Texas.

The well having reached a total depth of 11,012ft on September 17, 2010, has shown signs of potential pay sands in the Wolfcamp, Spraberry and Atoka formations.

The oil explorer said that the production casing has been set and Devon is preparing the 158 well for further completion operations, which will include a necessary fracture stimulation program.

The initial, single stage frac is slated for mid October that will be performed in the Atoka formation with future frac procedures planned for the Wolfcamp and Spraberry formations.

Caza has also said that after the success of the 158 well, the rig has moved onto the Caza 162 #1 well location and commenced the drilling.

The 162 well will test the western portion of the Windham Wolfberry Prospect.