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I agree, the fact that management bought in shows confidence. Oil prices remain in our favor, also.
T
Concerned that no volume showed after an hour of the day's trading, I looked more deeply and found the following news. Notice that the offering price is discounted less than 5%. That tells me clearly what expectations are---from within the management hierarchy itself. It is notable as well that certain individuals within the management group have seen fir to pick up some of the offering themselves.
The share price will likely dip on the news as all dilutive news frightens investors. I'd be adding if I had available cash as I've been a big believer for some time now. This cash infusion is targeted as the means to further develop spectacularly successful forays into the Permian Basin and next is the highly prospective Bone Spring play in New Mexico.
************************************************************
Caza Oil & Gas, Inc.: Placing to Raise Approximately US$10.0 Million
7:46a ET July 1, 2014 (Market Wire) Print
Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX: CAZ)(AIM: CAZA) is pleased to announce that it has conditionally raised gross proceeds of approximately US$10.0 million (approximately GBP 5.9 million and C$10.7 million) (the "Placing") through the placing of 32,679,739 common shares (the "Placing Shares") at a price of GBP 0.18 (approximately C$0.33) per share (the "Placing Price").
The Placing Price represents a discount of approximately 4.6 per cent. to the closing market price of GBP 0.18875 on June 30, 2014, being the last practicable dealing day prior to the publication of this announcement. The Placing Shares will represent approximately 13.8 per cent. of the Company's share capital, as enlarged by the Placing Shares.
The Placing Shares, which will rank pari passu in all respects with the Company's outstanding common shares, have been conditionally placed by Cenkos Securities plc subject to admission of the Placing Shares to trading on AIM ("Admission") and the approval of the Toronto Stock Exchange (the "TSX"). Application has been made to London Stock Exchange plc for Admission, which is expected to occur at 8.00 am (London, GMT) on July 4, 2014.
Following admission, the Company will have 236,355,884 common shares outstanding. The figure of 236,355,884 common shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.
Reasons for the Placing and Use of Proceeds
Caza's primary focus is in the Permian Basin of West Texas and Southeast New Mexico, the most prolific oil and gas basin in North America. During the past year, management has focused efforts on building a core asset base in the prolific Bone Spring play in Southeast New Mexico, which is one of the most active and predictable oil plays in the US. The Company considers its assets here to represent the most significant opportunity to deliver material production, revenue growth and demonstrable shareholder returns. The Company now has over 300 drilling locations plus 23 (6 net) producing wells in the Bone Spring play and utilises recent advances in horizontal drilling and dynamic completion technologies to unlock the significant resources within its asset base and the region.
The Company intends to use the net proceeds of the Placing of approximately US$9.35 million (approximately GBP 5.5 million and C$10.0 million) to embark on an accelerated and expanded drilling program in the Bone Spring play and for its general corporate purposes. Subject to due diligence, management has also identified asset acquisitions in Lea and Eddy Counties, New Mexico, each of which have potential drilling locations in the Bone Spring play. The Company will also look to participate in annual Federal Lease Sales and in monthly State of New Mexico Lease Sales in order to acquire new acreage, which, if successful, should allow the Company to achieve further growth in its reserves and production.
Director Shareholding
James Markgraf, Chief Financial Officer of the Company, has subscribed for a total of 16,339 Placing Shares pursuant to the Placing at GBP 0.18 per Placing Share and his resultant total shareholding in the Company is 16,339 common shares, representing approximately 0.01 per cent. of the Company's share capital, as enlarged by the Placing Shares. In addition, Mr. Markgraf holds 300 shares in Caza Petroleum, Inc. ("CPI Shares"), a subsidiary of the Company, that may be exchanged under the Share Exchange Agreement for 840,000 common shares in the Company (an exchange ratio of 2,800 Shares for each CPI share). The CPI Shares have no voting rights concerning the Company until such time as they are exchanged. A more detailed description of the Share Exchange Agreement can be found in the Company's latest Annual Information Form on SEDAR at www.sedar.com or the Company website at www.cazapetro.com.
In addition, David McManus, Non-Executive Director of the Company, has subscribed for a total of 555,556 Placing Shares pursuant to the Placing at GBP 0.18 per Placing Share and his resultant total shareholding in the Company is 555,556 common shares, representing approximately 0.24 per cent. of the Company's share capital, as enlarged by the Placing Shares.
W. Michael Ford, Chief Executive Officer commented:
"Our successes over the past year in the Bone Spring play in Southeast New Mexico have provided the Company with steady growth in reserve, production and asset values. This has led to a renewed and stronger share price for Caza, which has allowed us to successfully effect this equity raise.
The proceeds from this Placing will allow us to accelerate our drilling program and acquire additional leases and acreage in the Bone Spring play, which should continue our growth profiles in all categories for the foreseeable future. Most importantly, this anticipated growth should result in asset values that would more than compensate for any perceived dilution to current share value.
We are now focused on one play in one basin and look forward to building on our successes in the Bone Spring play and continuing to create meaningful value for our shareholders."
Might be the same person who wrote the Seeking Alpha summary. That is now a "pro" member only access - such a shame as it was very well written.
I'm long and I will continue to add as this stock is extremely under valued at this time.
And, this news isn't so bad either - it just keeps getting better all of the time: Caza Oil and Gas announce ANOTHER successful Bone Spring Well
Thanks !
Have you read the recommendations at SA Advisory? His last two newsletters(free) has Caza as his top pick. That is where I heard of them. I am just a regular investor, not a pump for them. The website is SAAdvisory.com
T
Yours is a smart move in my opinion. I've got a bunch myself and am pleased thus far.
Yes it is excellent information. Just added 1000 more shares. I'll keep building my position here.
REALLY GREAT POTENTIAL here for 800% ROI !
Caza Oil & Gas Announces 10% Increase in Proved Reserves and Updated Reserves Figures
Excellent information.
Thank you!
Let's keep the dream alive.
"Hit the snooze button."
Good to see you back here, Greg!
Adding at these low prices is a no-brainer imo. Gains have been wiped out today but there's no getting around the meaning of a 10% restatement to the upside regarding proved reserves. Conservative management teams are loathe to overstate reserves only to find it necessary to backtrack. Better to leave such matters to reservoir specialists who are engineers especially prepared to evaluate where and how much oil and oil equivalents are located within a pay zone. So when we get news of better numbers than even management had known, it's as good as things get.
My prediction is that we're going to be very pleased with our investments here. I'm thinking it will probably be amply evident by the end of the year. About the only potentially disruptive influence I might imagine is a global disturbance of some sort.
Looking forward to greener days and pastures, too!
Len
Hey Len,
Was away for a few days from Ihub. Returned today to see your nice PM plus saw that the original 10 minute gap we spoke of before was filled today. I personally am on a much tighter budget than you but was able to add to my position today as planned.
I personally only have 2000 shares at this point.
I bought my original 1000 shares at .3672
and now the second batch of 1000 at .319
So, we wait to see how we both do. I'm glad you have your plan
going strong.
Me, well I am still down at the moment, but I doubt that I am down long looking at how the chart is forming up.
Time will tell.
Greg
Today the World Bank stated that we're all in a period of global decline. Negativity of this sort impacts mercilessly on energy markets as will be evidence by the harsh decline in airline stock numbers.
With CAZFF down about three cents, I increased my position by 10% thus far. For the sake of full disclosure given that message boards are often littered with half-truths if not outright lies, these are my numbers:
Shares held: 33,000
Gain/loss: +3.99%
As time goes on, I hope others here will judge for themselves how well one investor makes out in this particular pick. In fifteen minutes of posting, opportunities to edit the above information will expire so this is the real deal.
If shares continue to drop, I'll add more, probably capping things at 35,000 shares or 2,000 sh. from this point. My plan is to balance this pick with another---LNREF, employing a 2:1 ratio favoring CAZFF. My thinking is that both will do very nicely but I see CAZFF as possibly more talented in terms of leadership. I'm not sure of this yet and am hoping time will reveal any inherent veracity. A severe dip in either stock will have me extending further.
Good luck to all here!
My opinions only in the above.
CAZFF may seem as though it's sleepwalking but that isn't the case at all. Rather, I see things consolidating after a run-up. It's like resting after a hard run uphill, time to stop all motion and let things be. The cookie crumbs will fall nicely.
This is why I maintain several GTC bids in play at prices well below the current price per share. Every so often I'll find one of the offers was accepted and sell something less desirable. This guarantees an ever-refreshing churning effect and keeps things real.
I'm convinced CAZFF is going to run, won't take long before we see it pushing 50 cents. It's not often at all that we hear of an E&P reporting a 10% increase in proved reserves! That is huge. When investors "get it," they will get it (the stock).
My opinions herein.
Thank you. I appreciate that. Good vibes create great boards.
Nice post very thorough! Nice DD. Happy I a little position to ride the monster wave ahead.
Today brings quite a press release from Caza. I haven't had time to digest it yet but here it is:
http://www.marketwatch.com/story/caza-oil-gas-announces-10-increase-in-proved-reserves-and-updated-reserves-figures-2014-06-09-2173128
The main drift is that company reserves are now recognized at +10%--- greater than known and recognized earlier. This is not about possible or probable reserves. Rather, it's a reference to their "proved" reserves.
Possible, probable and proven are known as the three P's in the E&P arena (Exploration and Production). To make it easier for some, P1 refers to Proved Reserves and is a key benchmark by which we want to be evaluating a production company.
P2 refers to Probable reserves. These are reserves whose numbers are based in part on assumptions. P3 represents possible reserves. Again, logic indicates a likelihood of oil being present due to a confluence of indicators suggestive of significant oil finding opportunity in the same area or, at the least, influenced by factors consistent with established findings in an adjacent area. P3 numbers may yield less than a third of the stated oil in place (OIP). P2 may be established by examining drill results from contiguous areas and will likely produce a greater percentage of OIP.
However, in ALL INSTANCES, only the drill bit will actually determine presence and availability of oil in a leased site. Thoroughness of seismic gathering, quality of analysis and subsequent interpretation, financial means to fully explore all possibilities---this is extremely complicated and demanding work needed long before profitability. Thus it is remarkable to hear that proved reserves have been bumped up and by such a large amount.
At the root of all E&P success is geophysics. This is the art of sniffing out oil in place. It appears that our management possesses a sixth sense common to only the finest geophysicists. My hunch is that CAZFF is soon going to demonstrate an impressive move to the upside in terms of share price.
The above is in my opinion only.
Value-digger makes some strong points for owning Caza, I don't think I've every seen so many comments on an SA article for this sized company. He definitely has some followers, he's now talking up LNREF. Going to also add to radar.
Caza Oil operates in some of the same fields another E & P does---Abraxas Oil and Gas (AXAS). Yesterday it was announced that AXAS's production value had increased significantly. Shares of that company are now $5.19. I purchased just 500 shares in December of 2013 @ $3.09, a gain of 68%.
Caza also boasts superior oil field assets, great oil-finding sense & instincts, top flight seismic tools and the latest in drilling techniques. Two fine companies working in the same corner of the energy spectrum in Texas' Permian Basin.
This time I got smart.....building what is now a 25,000 share base in CAZA and enjoying a $3,200 gain. I won't be foolish again!
Sometimes we hear people remark that a stock speaks to them. CAZFF isn't speaking to me, it's screaming! And I'm listening. I'm not going to wave a pompom or brag about future earnings potentials. Instead I'll simply say that people who know me know that I do well when I listen to my instincts tempered by in-depth knowledge of a company. I mention this because I hate seeing people miss out of opportunities---especially when participation is so easily financed for 43 cents!
My prediction: Shares will exceed a dollar by year end.
All in my opinion only. I sure hope others will give themselves the same chance to prosper by looking into this.
Thanks Len, also thanks for the PM.
I'll check out BCLI and I understand about being immersed.
It is fun though, to trade tips. I've got a very LONG TERM
trade called LBSR - you might want to throw a few bucks at them as well for the LONG TERM. Could happen sooner than later though and is under .02 Been following them for 10 years.
Gotta run now - have a great afternoon / evening !!
Greg
Thanks, Greg.
Have you considered offering to be a board moderator here? It appears we have none. You're coming up with interesting and helpful material, of great value to investors. I'm betting this board is going to prosper nicely, thanks to our pick doing so well.
Len
Me too! Discussing this stock is the point of the board. Examining prices paid and/or considered for purchases are wholly relevant. This makes for a stronger board, imo.
Today 43 cents shares looked good enough to me. Would like to add while possible at under 50 cents. Expect it to blow through that level before Summer is done. There may be a pullback here pretty soon but I won't participate as a seller. Longer term value will be in the share price developing by year end. I could believe a dollar.
All in my opinion only.
Len
Happy Birthday to you Len !!
Yes, you should be very pleased with yourself !!
Looking good here !! Would have liked to have purchased more shares, but got all I could afford at the time. Thanks to stockfetcher.com for an excellent stock screening program that allowed me to write a simple program to find this baby !! HAPPY BIRTHDAY !!
Well, I had originally placed my orders at the 10 minute gap back at .316 area. But, the chart pattern is strong enough where I thought it just might take off considering the latest developments on the new wells coming on line and the increases in output of the ones already operating. I'm up nicely already with my buy at .36, would have liked to have gotten in lower - but what they hey.
You should really be sitting pretty with your shares.
Thanks so much Len, I appreciate the back and forth.
Seeing CAZFF trade this beautifully is the perfect birthday gift for me. This stock pick was screaming, "Buy Me!" I added late last week and am totally pleased with myself;and equally pleased that there's more than just me enjoying this ride.
Momentum favors considerable upside here. I'm betting we'll be seeing upwards of a dollar before year's end. And if there's anything approaching serious global conflict, the share price will move even more convincingly.
This is for two reasons:
1. Drilling is in Texas and not vulnerable to the usual threats.
2. The push is on for America to be completely self-reliant.
All this on top of terrific oilfield results plus increased acreage tells only part of it. Availability of pipeline infrastructure, superior seismic, oil well smarts plus something you don't get to see until you're involved with exploration companies---oilfield politics. A handshake continues to seal the deal in the drilling arena. Leases are eventually used to document things for legal reasons but commitments happen all the time and forward steps will often precede written contracts.
Experience points to this as a splendid play that is still shockingly cheap. I predict it will not be the case shortly.
All of the above in my opinion only.
Good hearing back from you, Greg. I came close to adding today but smelled a dip coming. In a way it materialized although not in the usual way. Rather, the upward bias in momentum hiccoughed momentarily. I think it's nothing more than profit taking but we'll have to see.
If shares drop back to 34 cents tomorrow, I believe they could retrace back to a few cents lower, still. This has nothing at all to do with the company. It's about numbers and how they settle in the minds of everyday investors. But a numbers guy will tell you that momentum spells everything except for earth-shaking newsworthy events.
So I'm watching to see if we retrace tomorrow. If shares drop back to the low 30 cent range, I'll be placing orders for shares at 29.5 cents and below. The time span for such action in my mind would be over the next week to a week and a half. I'm a numbers guy and this is fitting a familiar pattern for me.
This could get very exciting. Stay tuned!
Len
Caza Oil and Gas should appreciate over 800% from current stock price:
http://seekingalpha.com/article/2216443-how-to-invest-in-a-deep-value-investment-opportunity-in-3-easy-steps-load-caza-oil-and-gas-sit-and-wait
Len - great to hear that you have been able to build upon your position. I believe it is a "wise" investment. Yes, the company's expansion is quite amazing. The SA article was very revealing and helped me make my decision in the stock purchase.
I'll be adding more. My funds have been rather limited for investing since the 2009 crash as I got caught with my pants down on that one.
But, I am slowly building my way back up. I will be buying more here a little at a time as funds allow. Looks to be a good "LIQUID" investment here.
Have a great week,
Greg
Welcome aboard! It's always good to be able to share insights and experiences with fellow investors. I hope this investment works out well for you.
After our communication last week, I took a closer look at CAZFF for myself and added 26% to my position. I'm glad I did as my respect for this company is growing all the time...along with a 50% gain prior to last week's add. New shares are up nearly 4%.
May we all enjoy great fortune.
Len
Thanks again for the input. I tried to buy in several times on Friday based upon the Hi/Lo of the day. Each time, the current selling price would go upward. Of course through Strategy Desk, the bid/ask are not shown on this security. I placed my final bid for shares at .36 before I had to leave for work. At that time, the selling price shown was .365 and the lo had been .345
I didn't get filled. Will see how the market goes on Monday.
Have a great weekend,
I777
CAZFF is a beauty, alright! After counseling a few friends via phone and emails yesterday, I got the SA article on it as well. But I'd already been in the stock. This morning I plunged more deeply and now hold a bit more than 20,000 shares. I expect to add more as this should probably be a couple of dollars or more per share. Either way it goes, I doubt it will be going down much, save for the usual trials by fire wrought by day traders in search of the quick buck.
Thanks for sharing your interest. It adds great value here and it might contribute to financial security for others.
My opinions only in the above.
This popped up on my stock screener today. I'd say you made a great find. Now, haven't had much of an opportunity to do much DD, but this article is written very well and quite informative.
http://seekingalpha.com/article/2216443-how-to-invest-in-a-deep-value-investment-opportunity-in-3-easy-steps-load-caza-oil-and-gas-sit-and-wait
I'm seeing a gap on the 30 minute chart in the .31 to .325 area.
Do you think she will look back to fill the gap tomorrow?
Looks to be a very good trade. Thanks for your input here
Looks like we're forging a path going nowhere but upward once again. Up 19% on the day with twenty minutes to go. Profit takers will probably walk off with some of the gains but that shouldn't stop positive momentum.
This begs the question: At what point will investors take note and pile on? This appears to be a duplicate of what happened with Abraxas (AXAS) not so long ago. And both companies operate in exactly the same area and environment. Small wonder that some investors will hold out for similar potentials hopefully to be realized in CAZFF!
My opinions only in the above commentary.
I wish all the very best of good investing to all here.
My 15,000 shares are held through Ameritrade. It's a great brokerage, touted by Barrons as at least one of the best if not the best of class.
There's no after charges or order limits. I'll buy millions of sub-penny shares for the same commission. And as an Apex client---more than $100K with them---I've wrangled the commission rate down to $6/trade.
I'm able to buy any stock I wish, regardless of where the issuing company is domiciled. CAZFF is domiciled out of the US although operating in the US's Permian Basin. The "FF" tag tells you this.
To answer your question, I'd be switching brokerages yesterday. When I'm driving, nobody else gets executive steering-wheel privileges.
Stay in touch, I'd like to hear your success story!
IMHO.
I'm really interested in this stock. I've known the CEO (family friend) for a long time and everything he's touched has turned to gold.
But I can't find a way to actually buy the securities. ShareBuilder is saying it can't touch CAZFF... Any ideas?
A bit of disclosure is appropriate here:
When I saw the posted numbers I rushed to put in an order for shares on the cheap. The order executed immediately and being convinced this thing would rocket or die on the vine, I placed another order. The position stands at 15,000 shares with a cost basis of $0.23872. The next day, about half the gain was wiped out with the balance now at $454 or +12.58%. A bad market day. I'm thinking that CAZFF may drop more on Monday for either of two reasons or even both:
1. Shares may be temporarily inflated due to the startlingly positive report only to drop soon after.
2. Thursday and Friday were turbulent trading days. Another of my oil & gas positions is Abraxas Petroleum in which I've got a 51.48% gain---operates in the same immediate vicinity as does CAZFF, same geology. This other stock gave back half its gains on Friday.
Add it up and I'm urging you to place an order now to execute first thing Monday morning---if you're set on starting a position, that is---with several laddered lowball offers of $0.26, $0.265, $0.27, $0.275---you probably know the drill. Sometimes I forget to think in terms of a half penny but it can save us money. The tiered approach leaves you in more control, especially if you're unable to monitor things due to other obligations.
It's too early to know how the stock will trade this coming week but I'm convinced it will eventually settle down, the day traders will have moved on and I'm expecting shares will triple or better during the next Winter.
I'll be looking to add as well, using the name numbers above.
Good luck in your investing, I hope it works well for us both!
My opinions in the above, of course.
I will be a heavy buyer monday.
How can I answer that for you? What I know is that there's been little to no activity on this board of late. Poring over the financials for the last quarter tells me there should be a lot of activity for the numbers are really outstanding. But that's OK as I'm a happy camper thus far even if the only kid on the block.
My opinions only!
It's a shame nobody's home in this stock, given the numbers just released yesterday. Sure, they may have to restate a number of things in order to conform to SEC requirements with respect to accounting.....but momentum favors continuing profits. Peering past the typical taboo associated with restating filings, I picked up 15,000 shares early morning resulting in a 25.67% gain for the day. This level of momentum screams "BUY!" at me.
However, it's all too easy to be swept up in the euphoria and wise to sit back to see where the crumbs settle before plunging.
Meanwhile, it sure would be nice to find I have a partner-of-interest in this pic. And that's my invitation for the moment.
All in my opinion in the above comments.
2011 highlights include:
-- Proven reserves at December 31, 2011 increased 36% to 2.35 million (MM)
barrels of oil equivalent (boe) and proven plus probable reserves
increased by 150% to 12.12 MMboe from December 31, 2010, as estimated by
the independent report completed by NSAI (as defined below under Reserve
Data) dated as of December 31, 2011;
-- Net present value of future net revenue attributable to proved reserves
increased 63% to US$45.8MM (US$28.1MM: 2010), and proved plus probable
reserves increased 72% to US$145.2MM (US$84.3MM: 2010) (discounted 10%)
as estimated by the NSAI Report;
-- Average production volumes increased 38% to 240 boe per day (boe/d) for
the twelve month period ended December 31, 2011 (174 boe/d: 2010);
-- Revenues increased 63% to US$1.21MM for the three month period ended
December 31, 2011, (US$0.74MM for the comparable three month period
ended December 31, 2010);
-- Annual revenues increased 83% to US$4.1MM for the year 2011, (US$2.23MM:
2010).
watch this one, currently unknown. BV= .35 yet trades @ .16, cash = $24M, OS = 164M, float= 128M.
from 9/30:
Caza Oil & Gas, Inc. (TSX:CAZ)(AIM:CAZA) (the "Company") has announced today
that it was informed on September 29, 2011, that following a purchase of
1,400,000 ordinary shares in the Company completed on September 28, 2011, the
Junior Oils Trust now holds 16,400,000 shares representing 9.97 percent of the
issued shares of the Company.
from 9/28:
Caza increases its net, daily production by approximately 88% over
Second Quarter rates from 199 boe/d to approximately 374 boe/d;
-- Caza Elkins 3401 and 3402 wells producing combined, gross rates of 219
bbl/d of oil and 356 Mcf/d of natural gas;
-- O.B. Ranch #1 and #2 wells producing combined, gross rates of 34 bbl/d
of condensate and 661 Mcf/d of natural gas;
-- Caza 158 #1, 158 #2, 158 #3 and 162 #1 wells producing combined, gross
rates of 80 bbl/d of oil and 151 Mcf/d of natural gas;
-- All near term wells remain fully funded.
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