20 May 2010 07:00
May 20, 2010
Caza Oil & Gas, Inc. ("Caza" or the "Company")
Windham Wolfberry Prospect - Execution of Exploration Agreement
Houston, Texas (May 20, 2010) - Caza (CAZA AIM SYMBOL/CAZ TORONTO SYMBOL) is pleased to announce that it has executed an exploration agreement (the "Agreement") with Devon Energy Production Company, L.P. ("Devon"), naming Devon as operator, to jointly test and develop Caza's Windham Wolfberry prospect in Crane and Upton Counties, Texas, covering approximately 1,318 net acres. The Agreement provides terms whereby Devon can earn 75% of Caza's 100% participation interest in the initial well. After completion of the initial well, Devon will have the right to participate for its 75% interest in all operations associated with the property, and Caza will participate for its remaining 25% interest.
W, Michael Ford, Chief Executive Officer commented:
"We are very pleased to announce this joint project with Devon. This alliance fits with our strategy to reduce single project exposure through farm out arrangements and to increase the number of projects drilled. If successful, the Windham Wolfberry prospect will open up numerous development locations for oil. We plan to drill this prospect in the third quarter of 2010."
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.
For further information please contact:
| John McGoldrick, Caza Oil & Gas, Inc | +1 281 363 4442 |
| Michael Ford, CEO, Caza Oil & Gas, Inc. Tim Feather/Richard Baty, Westhouse Securities Limited | +1 432 682 7424 +44 (0)20 7601 6100 |
www.cazapetro.com
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.
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", "targeting", "intend", "could", "might", "should", "believe", "completion of the initial well" and "jointly test and develop", "development locations" and similar expressions. Information regarding the operations to be conducted on the Windham Wolfberry Prospect, 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 Agreement 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.