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

Caza Oil & Gas, Inc.

September 29, 2010 02:00 ET

Caza Oil & Gas Inc.: Operations Update; Windham Wolfberry Prospect

HOUSTON, TEXAS--(Marketwire - Sept. 29, 2010) - Caza (TSX:CAZ)(AIM:CAZA) ("Caza" or the "Company") is pleased to announce that the Caza 158 #1 well (the "158 well") in Upton County, Texas, operated by Devon Energy Corporation ("Devon"), reached a total depth of 11,012 feet on September 17, 2010. Electric logs indicated multiple potential pay sands in the Wolfcamp, Spraberry and Atoka formations. The production casing has been set and Devon is preparing the 158 well for further completion operations. The completion procedure will include a necessary fracture stimulation program. The initial, single stage frac is scheduled for mid October and will be performed in the Atoka formation with future frac procedures planned for the Wolfcamp and Spraberry formations.

Caza is also pleased to announce that following the success of the 158 well, the rig has moved onto the Caza 162 #1 well (the "162 well") location and commenced drilling. The 162 well will test the western portion of the Windham Wolfberry Prospect.

Caza currently has a 25.0% working interest and a corresponding 18.75% net revenue interest in each well.

Caza's Chief Executive Officer W. Michael Ford, said, "We are very pleased to announce that the 158 #1 is scheduled for completion. Successful future production tests on both this well and the 162 #1 well will spearhead a development program across our current lease block with the potential for approximately 16 locations on 80 acre spacing."

About Caza

Caza is engaged in the acquisition, exploration, development and production of hydrocarbons in the Texas Gulf Coast (onshore), south Louisiana, southeast New Mexico and the Permian Basin of West Texas regions through its subsidiary, Caza Petroleum Inc. For additional information on Caza, visit www.cazapetro.com.

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", "if successful" and similar expressions. Information regarding the operations to be conducted on the Windham Wolfberry Prospect and/or the 158 well or the 162 well, 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 Devon's obligations under the joint exploration agreement governing the prospect area associated with the 158 well and 162 well, and its elections in connection therewith, projected revenue and expenses and well performance. Specifically, the Company has assumed that these agreements, prospects 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.

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
    +18325731914/+447796861892
    www.cazapetro.com
    or
    Westhouse Securities Limited
    Tim Feather/Richard Baty
    +44 (0)20 7601 6100
    or
    Conduit PR
    Jonathan Charles/Ed Portman
    +44 (0)20 7429 6611