Caza Oil & Gas, Inc.
TSX : CAZ
AIM : CAZA

Caza Oil & Gas, Inc.

November 22, 2010 02:00 ET

Caza Oil & Gas Announces Completion of O.B. Ranch #1 Well/Bongo Prospect

HOUSTON, TEXAS--(Marketwire - Nov. 22, 2010) - Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX:CAZ)(AIM:CAZA) is pleased to provide an operational update on the O.B. Ranch #1 exploratory well on the Bongo Prospect in Wharton County, Texas.

As previously announced, Caza began the completion procedure on the O.B. Ranch #1 well on November 13, 2010. The well was perforated in the Cook Mountain formation between 12,494 feet and 12,826 feet across selective intervals and fracture stimulated on November 15, 2010. Fracture fluid is still being recovered, but initial production rates on a 10/64ths choke at 6,788 pounds per square inch flowing tubing pressure are 2.65 million cubic feet of natural gas per day and 311 barrels of oil per day. Caza currently has a 43.28% working interest and an approximate 32.03% net revenue interest in the well.

W. Michael Ford, Chief Executive Officer commented:

"We are very pleased with the initial production results on the O.B. Ranch #1 well and have plans to develop the Bongo Prospect in due course beginning in 2011."

In accordance with AIM Rules – Guidance Note for Mining, Oil and Gas Companies, the information contained in this announcement has been reviewed and approved by Anthony B. Sam, Vice President Operations of Caza who is a Petroleum Engineer and a member of The Society of Petroleum Engineers.

ADVISORY REGARDING FORWARD LOOKING STATEMENTS

Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Such information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "schedule", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "intend", "could", "might", "should", "believe", "develop", "test" and similar expressions. Information regarding the Bongo Prospect, O.B. Ranch #1 well and/or potential production of flow rates contained in this news release constitute forward-looking information within the meaning of securities laws.

Implicit in this information, particularly in respect of "Bongo Prospect", "O.B. Ranch #1 well", "completion" and "initial production rates" are assumptions regarding projected revenue and expenses and well performance. Specifically, the Company has assumed that the wells, prospects and/or activities will produce positive results. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual future operating results and economic performance of the Company are subject to a number of risks and uncertainties, including general economic, market and business conditions and could differ materially from what is currently expected as set out above. In addition, the geotechnical analysis and engineering to be conducted in respect of the OB Ranch #1 well is not complete. Future flow rates from the well may vary, perhaps materially, and the well may prove to be technically or economically unviable. Any future flow rates will be subject to the risks and uncertainties set out herein.

For more exhaustive information on these risks and uncertainties you should refer to the Company's most recently filed annual information form which is available at www.sedar.com. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time except as may be required by Securities laws.

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

Contact Information

  • Caza Oil & Gas, Inc.
    Michael Ford
    CEO
    +1 432 682 7424
    or
    Caza Oil & Gas, Inc.
    John McGoldrick
    Chairman
    +1 832 573 1914/+44 7796 861 892
    www.cazapetro.com
    or
    Cenkos Securities plc
    Jon Fitzpatrick
    +44 20 7397 8900
    or
    Cenkos Securities plc
    Beth McKiernan
    +44 131 220 6939
    or
    Conduit PR
    Jonathan Charles/Ed Portman
    +44 20 7429 6611