CAZA.L Regulatory News (CAZA)

May 22, 2012

Caza Oil & Gas, Inc.

CAZA OIL & GAS PROVIDES OPERATIONAL UPDATE

HOUSTON, TEXAS (Marketwire - May 22, 2012) - Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX: CAZ) (AIM: CAZA) is pleased to provide an operational update on the Company's drilling activities in southeast New Mexico.

Sombrero Prospect, Lea County, New Mexico. The CML Exploration, LLC ("CML") operated WC 35 State No. 1 well has been perforated in the San Andres interval between 4,814-4,821 feet. CML is swab testing the well with a 50% oil cut and good fluid entry, reporting 700 feet of fluid on each run. There remains 25% of load to be recovered, and CML is waiting for an available frac crew to frac the well. Caza will update the market accordingly once the frac has taken place. Caza has a 20% working interest and an approximate 17.125% net revenue interest in the WC 35 State No. 1 well.

Bradley 29 Prospect, Eddy County, New Mexico. The Mewbourne Oil Company ("Mewbourne") operated Bradley "29" Fed Com No. 3H horizontal well has reached its primary objective, the Second Bone Spring sand, at a total vertical depth ("TVD") of approximately 8,190 feet subsurface. Mewbourne has commenced drilling the horizontal section of the well through the Second Bone Spring sand. According to the latest drilling survey, the well is at approximately 9,806 feet measured depth ("MD") and is scheduled to be drilled to 12,674 feet MD (8,173 feet TVD). Mewbourne has reported good mud log shows through the Bone Spring section of the well. Caza has a 20% working interest and a 15% net revenue interest in the Bradley "29" Fed Com No. 3H well.

Quail Ridge Prospect, Lea County, New Mexico. The Quail "16" State No. 3H horizontal well, operated by Fasken Oil and Ranch, Ltd. ("Fasken") is drilling at approximately 10,787 feet MD. The primary horizontal objective is the Third Bone Spring sand at approximately 10,965 feet subsurface with a total measured depth of approximately 15,340 feet. Caza has a 0.25% working interest and an approximate 0.1875% net revenue interest in the Quail "16" State No. 3H well.

Lynch Property, Lea County, New Mexico. Cimerex Energy Co. of Colorado ("Cimerex") is producing two horizontal Third Bone Spring wells within half a mile of the Company's Lynch property. Cimerex's Lynch 23 Federal Com #001H well has produced 105,141 barrels of oil ("bbl") and 72.4 million cubic feet of natural gas (MMcf) in its first 131 days of production, which equates to average daily rates of 803 bbl and 553 thousand cubic feet of natural gas ("Mcf"). Cimerex's Lynch 23 Federal Com #002H well has produced 101,111 bbl and 139.7 MMcf in its first 221 days of production, which equates to average daily rates of 458 bbl and 632 Mcf. As mentioned above, the Fasken Quail "16" State No. 3H is also a horizontal Third Bone Spring well. This well is within one mile of Caza's Lynch property and will provide valuable information for the Company's future drilling at Lynch.

As previously announced, 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, Lennox, Copperline, Mad River, Bradley 29, Two Mesas and Quail Ridge. The Company has acquired approximately 4,000 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 progressions to drilling and frac designs. The Company is well positioned in the play, and management continues to monitor opportunities to build on Caza's current acreage position.

W. Michael Ford, Chief Executive Officer commented:

"We are very pleased that the San Andres appears to be productive for oil in the Sombrero well. The Permian Basin is known for stacked pay zones, and we look forward to completing the frac job and getting the well completed and on line in the near future. We are also very pleased with progress made by Mewbourne and Fasken to date on the Bradley and Quail State wells. We hope to reach total measured depth on both wells within the next few weeks. Good news continues to be disseminated from activities in the horizontal Bone Spring play, and management is very pleased with recent activities near the Company's Lynch Property. Successful horizontal Bone Spring wells have been drilled on all sides of this property. We have also recently commenced preparations to drill the initial wells at Forehand Ranch, Lennox and Copperline prospects. Once drilling operations have commenced, we will update the market accordingly."

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).

For further information, please contact:

Caza Oil & Gas, Inc.

Michael Ford, CEO +1 432 682 7424

John McGoldrick, Chairman +44 7796 861 892

Cenkos Securities plc

Jon Fitzpatrick +44 20 7397 8900 (London)

Beth McKiernan +44 131 220 6939 (Edinburgh)

VSA Capital Limited

Andrew Raca +44 (0)20 3005 5004

Malcolm Graham-Wood +44 (0)20 3005 5012

M:Communications

Patrick d'Ancona +44 20 7920 2330

Chris McMahon

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 STATEMENT

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, information regarding drilling information to be obtained from drilling operations and intended completion operations 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 www.sedar.com and the Company's website at www.cazapetro.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.

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. Information regarding the Cimerex wells was obtained through the State of New Mexico Oil Conservation Division website and was dated as at March 20, 2012.