Rampant drilling in Texas and particularly in New Mexico increased oil and gas production four-fold at Caza Oil & Gas (CAZA) in the first six months. Output averaged 807 barrels of oil-equivalent per day (boepd), compared to 225 boepd over the same period last year. Moreover, 78 per cent of second-quarter output was premium-priced oil and natural gas liquids, up from just 54 per cent. And the average prices received for oil and gas rose 8 and 29 per cent respectively.
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The increase in production is starting to filter down to Caza’s bottom line. Adjusted cash profits climbed to $3.3m (£2m) in the second quarter, compared with $2.1m in the first quarter and losses in the corresponding periods last year.