drilling commenced

DRILLING UNDERWAY ON LARGE ONSHORE AMAZON PROSPECT
The ASX listed partners in the Amazon prospect, Tango Petroleum Ltd (ASX:TNP), Quest Petroleum NL (ASX:QPN) and Transerv Energy Ltd (ASX:TSV), are pleased to confirm that the Marian Baker #1 well commenced drilling on Sunday, 16 January, which is the initial test well on the large Amazon Prospect.
Amazon is regarded by the Operator, Caza Oil and Gas, Inc. (TSX: CAZ) (AIM: CAZA), to be a multi-segment prospect, with prospective reservoirs supported by AVO data within a proven play fairway. The Marian Baker #1 well is expected to encounter multiple, potential, hydrocarbon bearing reservoir sections and take approximately 50 days to reach total depth. The Amazon prospect is a large exploration target assessed by independent consultants ISIS Petroleum to have a 35% probability of success. The Amazon Prospect has an estimated mean recoverable potential of 375 billion cubic feet of natural gas and 37 million barrels of oil.
Amazon and Thames Project Highlights
The Amazon prospect has an estimated unrisked potential recoverable resource of between 301 to 736 billion cubic feet of natural gas and 30 to 73 million barrels of oil.
The combined potential of the Amazon and Thames targets is between 350 to 840 billion cubic feet of gas and 35 to 83 million barrels of oil.
Independent Consultants, Isis Petroleum, have reviewed the Amazon and Thames prospects and assessed the Probability of Success for Amazon and Thames at 35%.
Project Background
The Amazon and Thames prospects (Caza Oil & Gas, Inc. separately refers to these prospects as Arran and Tiree respectively) are part of a regional exploration project in south Louisiana. Approximately 1,000 square miles of proprietary reprocessed Seitel 3D data has been completed by the Operator with integrated key well and production data obtained.
The Amazon prospect is a large scale, hanging wall fold with nearly 2,000 acres in fault dependent closure including a 400 acre faulted four-way closure. The prospective reservoir interval is Oligocene sands which appear seismically very thick. Amazon has good AVO and Fluid Factor support.
A 16,000 ft exploration test of this multi-segment prospect commenced drilling on 16 January, 2011. The test well will drill through the Oligocene target sands between 14,000 ft and 16,000 ft where it is expected to encounter abnormal reservoir pressure in the order of 11,000 psi.
The Thames Prospect is currently proposed to drill a 16,000ft exploration test well of this multi-segment prospect on the flank of a vertical salt weld. The Thames prospect has stacked objectives in a fault bound block with one larger, deeper objective target interval providing large volume upside. The prospective reservoir interval is Oligocene ponded basin floor fan. The prospect has good AVO support. The Thames well is expected to spud in 2011 following the drilling and testing of the Amazon target reservoirs.