Caza Oil & Gas Announces Commencement of Drilling Operations

Caza Oil & Gas Announces Commencement of Drilling Operations on
Lennox Prospect and Provides Operational Update 
HOUSTON, TEXAS -- (Marketwire) -- 01/23/13 -- Caza Oil & Gas, Inc.
("Caza" or the "Company") (TSX:CAZ)(AIM:CAZA) is pleased to announce
that drilling has commenced on the Company's Lennox Prospect
("Lennox") in Lea County, New Mexico. The Lennox State Unit 32 No. 2H
horizontal well is the initial test well at Lennox. 
Lennox Prospect, Lea County, New Mexico. As stated above, the Lennox
State Unit 32 No. 2H horizontal well has commenced drilling. The well
will be drilled to a total vertical depth of approximately 11,850
feet with a total measured depth of approximately 14,740 feet. The
primary target is the Bone Spring Sands with potential secondary
targets in the Delaware, Lower Brushy Canyon, Avalon Shale and
After selling an additional 7.5% working interest on a promoted basis
and trading a 20% working interest on an acreage basis between Lennox
and Madera/Roja Prospects (see below), Caza now has a 40.00% working
interest before payout (31.88% net revenue interest) and a 50.00%
working interest after payout (39.85% net revenue interest) in the
Lennox State Unit 32 No. 2H well. 
Madera and Roja Prospects, Lea County, New Mexico. The Company
completed a working interest trade ahead of drilling at Lennox for
interests in leases on two new Company projects called Madera and
Roja Prospects ("Madera" and "Roja"). Caza traded a 20% non-operated
working interest (15.94% net revenue interest) in the Lennox leases
in return for a 20% non-operated working interest (16% net revenue
interest) in two leases covering approximately 1,680 acres operated
by Occidental Petroleum Corporation ("OXY"). OXY is expected to
propose two wells, one on each lease, later this year. 
Roja is a 280 acre lease located approximately 18 miles south of the
Company's Copperline Prospect, and Madera is a 1,400 acre lease
located approximately 20 miles south of Copperline. Both prospects
contain target objectives similar to the Company's other Bone Spring
projects, namely: Delaware, Lower Brushy Canyon, Avalon Shale, 1st,
2nd and 3rd Bone Spring Sands and Wolfcamp. 
Copperline Prospect, Lea County, New Mexico. The Company has filed
for an Application for Permit to Drill (APD) the Caza Ridge 14 State
No. 4H horizontal well. This well will be a direct offset to the Caza
Ridge 14 State No. 3H horizontal 3rd Bone Spring well and is
currently scheduled to be drilled later this year. 
Caza will have a 58.75% working interest (45.97% net revenue
interest) in the Caza Ridge 14 State No. 4H well. 
Quail Ridge Prospect, Lea County, New Mexico. The Quail "16" State
No. 4H horizontal well has reached its intended total depth of 15,605
feet measured depth and will be completed in the 3rd Bone Spring
Sand. Once the well is fracture stimulated, it will be brought
online. The operator intends to skid the rig to the Quail "16" State
No. 6H horizontal well location and commence drilling operations to
the 3rd Bone Spring Sand. Caza has elected to participate in the
Quail "16" State No. 6H well. 
The Quail Ridge wells, which offset the Company's Lynch property,
have produced positive results, and despite having a small
non-operated participation interest in the wells, the Company
continues to gain valuable information for future drilling at Lynch
and other Company projects. 
Caza has a 0.25% working interest (0.1875% net revenue interest) in
the Quail "16" State Nos. 4H and 6H wells. 
Company Bone Spring Prospects, Lea and Eddy Counties, New Mexico. The
Bone Spring formation in Lea and Eddy Counties, New Mexico, contains
multiple potential pay zones for oil and liquids-rich natural gas.
Caza's current prospects in the horizontal Bone Spring play are
Lynch, Forehand Ranch, Forehand Ranch South, Lennox, Copperline, Mad
River, Azotea Mesa, Bradley 29, Two Mesas, Quail Ridge, Rover, West
Rover, West Copperline, Madera and Roja. The Company has acquired
approximately 4,070 net acres in the play to date. Leasing and
drilling activity continues to increase in the play and initial
producing well rates continue to improve with technological advances
in drilling and frac designs. The Company is well positioned in the
play, and continues to exploit opportunities to build on its current
acreage position. 
W. Michael Ford, Chief Executive Officer commented: 
"We continue to progress our Bone Spring drilling program in
southeast New Mexico, and are very pleased to have commenced drilling
operations on the Lennox horizontal Bone Spring prospect. This is the
Company's third operated Bone Spring test well with a material
participation interest since August 2012. We are equally pleased to
have closed the working interest trade for interests in Madera and
Roja prospects. These are very good projects, and we look forward to
participating in test wells to be drilled on them along with a
development well at Copperline later this year." 
"Additionally, the Quail Ridge wells continue to produce good results
and provide valuable drilling and completion information. This bodes
well for future drilling operations on our Lynch property, located in
the adjacent section, as well as the Company's other horizontal Bone
Spring projects." 
About Caza 
Caza is engaged in the acquisition, exploration, development and
production of hydrocarbons in the following regions of the United
States of America through its subsidiary, Caza Petroleum, Inc.: Texas
and Louisiana Gulf Coast (on-shore), and the Permian Basin (West
Texas and Southeast New Mexico). 
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. 
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",
"hope", "project", "predict", "potential", "intend", "could",
"might", "should", "believe", "develop", "test", "anticipation",
"looks to be" and similar expressions. In particular, anticipated
working interests and net revenue interests, information regarding
the depth and timing of drilling operations, intended completion
operations and the anticipated commencement of production contained
in this news release constitutes forward-looking information within
the meaning of securities laws. 
Implicit in this information, are assumptions regarding the success
and timing of drilling operations, rig availability, projected
revenue and expenses and well performance. These assumptions,
although considered reasonable by the Company at the time of
preparation, may prove to be incorrect. Readers are cautioned that
actual future operations, 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.
Testing of the wells described in this press release has not been
completed, and the tests disclosed herein are not necessarily
indicative of long-term performance or of ultimate recovery. 
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 and the Company's website at 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. 
Information in this news release regarding areas in the Bone Spring
Formation in which the Company does not have an interest may not have
been prepared by a qualified reserves evaluator or auditor in
accordance with the Canadian Oil & Gas Evaluators Handbook. Such
information relates to areas which are proximate to areas in which
the Company has or intends to acquire an interest and has been
provided so that readers may better understand oil and gas activities
in areas in which the Company operates or plans to operate. There is
no warranty, express or implied, that the results of the Company will
be consistent with such information. The Company's results may differ
materially and readers should not assume the Company's results will
be consistent with those of other operators or use such information
for any purpose other than as specified herein. 
The Toronto Stock Exchange has neither approved nor disapproved the
information contained herein. 
Caza Oil & Gas, Inc.
Michael Ford, CEO
+1 432 682 7424 
Caza Oil & Gas, Inc.
John McGoldrick, Chairman
+65 9731 7471 (Singapore) 
Cenkos Securities plc
Jon Fitzpatrick
+44 20 7397 8900 (London) 
Cenkos Securities plc
Neil McDonald
+44 131 220 6939 (Edinburgh) 
VSA Capital Limited
Andrew Raca
+44 20 3005 5004 
VSA Capital Limited
Malcolm Graham-Wood
+44 20 3005 5012 
Patrick d'Ancona / Chris McMahon
+44 20 7920 2330
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