AIM-listed Caza Oil & Gas has announced that drilling has commenced on the company's Lennox prospect in Lea County in New Mexico.

The well will be drilled to a total vertical depth of approximately 11,850 feet with a total measured depth of approximately 14,740 feet. The primary target is the Bone Spring Sands with potential secondary targets in the Delaware, Lower Brushy Canyon, Avalon Shale and Wolfcamp.

After selling an additional 7.5% working interest on a promoted basis and trading a 20% working interest on an acreage basis between Lennox and the Madera/Roja Prospects, Caza Oil & Gas reported that it now has a 40% working interest before payout and a 50% working interest after payout in the Lennox State Unit 32 No. 2H well.

Roja is a 280-acre lease located approximately 18 miles south of the company's Copperline Prospect, and Madera is a 1,400-acre lease located approximately 20 miles south of Copperline. Both prospects contain target objectives similar to the company's other Bone Spring projects, namely Delaware, Lower Brushy Canyon, Avalon Shale, 1st, 2nd and 3rd Bone Spring Sands and Wolfcamp.

Michael Ford, Chief Executive Officer of oil and gas, commented:"We continue to progress our Bone Spring drilling programme in southeast New Mexico and are very pleased to have commenced drilling operations on the Lennox horizontal Bone Spring prospect.

"This is the company's third operated Bone Spring test well with a material participation interest since August 2012. We are equally pleased to have closed the working interest trade for interests in Madera and Roja prospects. These are very good projects, and we look forward to participating in test wells to be drilled on them along with a development well at Copperline later this year."

Caza's share price was down 2.73% to 13.38p at 09:11 on Wednesday morning.

MF

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