Caza oil and gas continues fireworks

U.S. focused oil and gas exploration group, Caza Oil and Gas, has been having quite a week. It is up yet another 17% to 13.5p, and so capping a 50% plus rise in less than 7 days!

As highlighted by a blog post last week (http://www.spreadbetmagazine.com/blog/caza-oil-and-gas-storms-up-25-on-operational-update.html), the re-rating has been driven by a positive operational update from its property in South East New Mexico and so leading to hopes that it will be cash flow positive ahead of expectations and therefore avoid further fund raising through dilutive placings.

The company is now valued at around £22 million and shows just how sentiment in the great AIM oil and gas casino can reverse sharply on any hint of good news. The scale of the change in Caza’s fortunes based on drilling success at the company’s Forehand Ranch prospect has been largely unexpected to say the least, particularly given the muted response to the operational update on the actual day of its release. 

Not so much a case of remember, remember the 5th of November…more like October 30th in the case of Caza!

Contrarian Investor UK