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

Caza Oil & Gas, Inc.

January 28, 2011 02:00 ET

Caza Oil & Gas, Inc. Announces Commencement of Development Drilling on Windham Prospect

HOUSTON, TEXAS--(Marketwire - Jan. 28, 2011) - Caza Oil & Gas, Inc. (TSX:CAZ)(AIM:CAZA) ("Caza" or the "Company") is pleased to announce that development drilling has commenced on the Windham prospect in Upton County, Texas. The operator commenced the drilling of the Caza 158 #2 well on January 23, 2011.

The 158 #2 is designed to drill to a total depth of approximately 11,100 feet to test the Spraberry, Wolfcamp, Penn and Atoka formations and should take approximately 35 days to drill. The prospect covers approximately 1,318 net acres and should initially be developed on 80 acre spacing.

As previously announced, the Caza 158 #1 and Caza 162 #1 wells encountered multiple pay zones, and both wells are currently in the completion phase, which requires multiple fracture stimulations.

Caza currently has a 25.0% working interest and a corresponding 18.75% net revenue interest in all three wells.

W. Michael Ford, Caza's Chief Executive Officer commented:

"We are pleased to announce the commencement of development operations on the Windham prospect. The ongoing completion operations on the first two wells are encouraging, and we look forward to the continued development of this project."

About Caza

Caza is engaged in the acquisition, exploration, development and production of hydrocarbons in the Texas Gulf Coast (on-shore), south Louisiana, southeast New Mexico and the Permian Basin of West Texas regions of the United States of America through its subsidiary, Caza Petroleum, Inc.

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", "upside", "potential", "targeting", "intend", "could", "might", "should", "believe", "encouraging" and similar expressions. Information regarding the operations to be conducted on the Windham Prospect and/or the 158 #1, 158 #2 and/or the 162 #1 wells, including the creation of new development locations, contained in this news release constitutes forward-looking information within the meaning of securities laws.

Implicit in this information are assumptions regarding: the timing of drilling operations, the performance of the operator's obligations under the joint exploration agreement governing the prospect area associated with the 158 #1, 158 #2 and/or the 162 #1 wells, and its elections in connection therewith, projected revenue and expenses and well performance. Specifically, the Company has assumed that these agreements, prospects, wells and/or activities will produce positive drilling 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 158 #1, 158 #2 and/or the 162 #1 wells is not complete. Future flow rates from the wells may vary, perhaps materially, and the wells 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
    Tavistock Communications
    Jonathan Charles
    +44 20 7920 3150