Texas-based Caza Oil & Gas has spudded a well on the Lennox prospect in Lea County, New Mexico.
The Lennox State Unit 32-2H horizontal well is being drilled to a total vertical depth of 11,850 feet, with a total measured depth of about 14,740 feet, targeting the Bone Spring Sands, according to Upstreamonline.
Caza said the well also had secondary targets in the Delaware, Lower Brushy Canyon, Avalon Shale and Wolfcamp.
“We continue to progress our Bone Spring drilling programme in south-east New Mexico, and are very pleased to have commenced drilling operations on the Lennox horizontal Bone Spring prospect,” Caza chief executive, W Michael Ford said in a statement on Wednesday.
“This is the company’s third operated Bone Spring test well with a material participation interest since August 2012.”
Caza said it had completed a working interest trade ahead of drilling at Lennox to gain stakes in leases on two new prospects in Lea County called Madera and Roja.
It traded a 20 per cent non-operated working interest (15.94 per cent net revenue interest) in the Lennox leases in return for a 20 per cent non-operated working interest (16 per cent net revenue interest) in the two Occidental Petroleum-operated leases.
It added that Occidental was expected to propose the drilling of one well on each lease later this year.
Caza currently holds a 40 per cent working interest before payout (31.88 per cent net revenue interest) and a 50 per cent working interest after payout (39.85 per cent net revenue interest) in the Lennox State Unit 32-2H well.