Caza Oil Gas (LON:CAZA), the US EP company, is exploring the possibility of selling its San Jacinto Property in Midland County, Texas.
In a market update, Caza said that even more favourable investment opportunities and attractive recent Wolfberry properties’ sale prices has led the management team to explore the possibility of divesting the property.
As a result, Caza has listed San Jacinto with the Oil Gas Asset Clearinghouse, a leading oil and gas property marketing and advisory firm, to determine the level of interest in the current market.
Caza said it believed that an orderly marketing of the property was most likely to achieve a desirable valuation but, should forthcoming offers not meet or exceed its internal matrix for return on investment and capital employment, management remained under no obligation to sell the property.
If an agreement to sell San Jacinto is ultimately reached with a buyer, Caza said it would use the proceeds to further existing assets and to pursue new opportunities in order to add additional shareholder value through continued investment in suitable properties.
The latest move comes as Caza has successfully completed the last phase of its engineering evaluation and operations to commingle all pay zones in the Caza Elkins 3401 and 3402 wells on the San Jacinto Property.
Caza currently has an 85% working interest in the Caza Elkins 3401 well with a 63.75% net revenue interest. In all subsequent wells on the San Jacinto property, including the Caza Elkins 3402 well, Caza will have a 75% working interest and a 56.25% net revenue interest.
W. Michael Ford, Caza’s chief executive, said: “We are very pleased with the progress made at San Jacinto and recognise that there is a strong and growing market for this type of asset. A successful exit would have the potential to unlock the increased value that we have created at San Jacinto. At present, we are exploring the options and opportunities available to us with the successful sale of this property and will look to further update shareholders as and when there are further developments.”
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