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US-focussed explorer Caza Oil & Gas Inc. (LSE:CAZA) said revenue for the second quarter increased, as production improved by new wells brought into operation, despite a drop in the price of oil.
In a statement released today, Caza reported over US$1 million revenue, about a third more for the same period a year ago, total production was at 25,107 boe, compared to 18,130 boe during the second quarter of 2011.
However, the average price receive by the company was 6% less to US$43.56, as the price of oil fell in the world markets.
According to the International Energy Agency (IEA), weak global economic activity in 2012 pulled oil prices down and the agency has already cut its oil demand forecast for 2013 by 150,000 bopd, despite increase in production.
No Stopping
Whilst Caza continued to show “positive operational and financial performance” in the second quarter, the company’s bottom line is still at a negative.
However, the company was able to divest some asset, which gave the AIM-listed firm $6.1 million, portion of which is intended by the company to finance its’ first operated well.
Caza has already contracted a rig to and is scheduled to spud its Copperline prospect in New Mexico, where it has 57.5% working interest, in the middle of this month.
“As 2012 operations progress, we look forward to updating the market on the Company’s exploration and production activities,” said Caza’s Chief Executive, W. Michael Ford, who also stated the company has five other prospects in line for the coming months.
Shares were up 3.9% to 6.625 pence at 1:00 PM GMT, after reaching as high as 6.75 pence earlier today, following the news.
Company Spotlight
Caza Oil & Gas Inc. is the holding company of Caza Petroleum, Inc., an exploration, production, and development company focussing in the Texas Gulf Coast, West Texas, South Louisiana, and Southeast New Mexico in the United States.
Incorporated in Canada, the company’s shares are listed on both the Toronto Stock Exchange and the Alternative Investment Market of the London Stock Exchange.
