The UK-listed company said the well reached the intended vertical depth of 3581.4 metres and log data and core samples had now been obtained.
“The Permian basin is known for stacked pay zones, and log and core data from the well have confirmed the presence of multiple potential pay zones containing oil and liquids-rich natural gas,” Caza chief executive W Michael Ford said in a statement.
The horizontal section will be drilled through the primary objective Lower Third Bone Spring sand, targeting an interval at 3464 metres deep. The section is planned to be 1408 metres long and 4809.7 metres deep.
Fracture stimulation of the well will follow the completion of drilling, Ford added.
Caza had reported good mud log shows for oil and natural gas throughout the Bone spring formation during the drilling of the vertical section, particularly in the Avalon shale and Third Bone Spring sand.
Shows were also seen in the shallower Lower Brushy Canyon and deeper Wolfcamp formations.
The company’s other prospects in the horizontal Bone Spring play include Forehand Ranch, Lynch, Lennox, Mad River, Azotea Mesa, Bradley 29, Two Mesas and Qual Ridge.
Ford said Caza was also planning to start drilling on its Forehand Ranch prospect on or before 1 October.