CAZA.L Regulatory News (CAZA)

9 May 2008 07:00

Caza Oil & Gas, Inc.09 May 2008 May 9, 2008 CAZA OIL & GAS, INC. ("Caza" or the "Company") (TSX:CAZ)(AIM:CAZA) Exploration and Operational Update HOUSTON, TEXAS (May 9, 2008) Caza is pleased to announce that exploration wellson its Eland Property and Puku Property, both located in Wharton County, Texas,have successfully encountered hydrocarbons. The following operational update covers current well activities. Eland Property - Located in Wharton County, Texas, the Hinton #1501 wellcommenced drilling on April 19, 2008 and reached a total depth of 6,712 feet onApril 25, 2008. Petrophysical logs were run on April 25, 2008, productioncasing was set at a depth of 6,700 feet and the Frio interval from 5,024 to5,039 feet was perforated on May 5, 2008. The Hinton #1501 well flowed naturalgas and was shut in to conduct a gravel pack completion. The Company iscurrently building its production facility and is preparing to tie the well backto a nearby gas trunkline. First sales are expected to occur on or about May20, 2008. Caza is the operator of this well and has a 35.0% working interest (25.0% netrevenue interest). Puku Property - Located in Wharton County, Texas, the Andel #2201 well commenceddrilling on April 29, 2008 and reached a total depth of 6,310 feet on May 6,2008. Petrophysical logs were run on May 6, 2008 and analysis of the dataindicates the well encountered Frio sand pay at depths ranging from 5,670 feetto 5,836 feet. The Company has confirmed hydrocarbon saturation and pressuredata from several zones. Production casing was set on May 7, 2008 andcompletion operations are expected to commence around May 16, 2008. Caza is the operator of this well and has a 35.0% working interest (26.52% netrevenue interest). Wilcox 116 Property - Located in Wharton County, Texas, the Jonell Cerny gasunit #1 well commenced drilling on January 15, 2008 and as previously announcedreached a total depth of 16,510 feet on March 3, 2008. Completion operationsbegan on April 2, 2008 with a dual zone multistage completion. Followingfracture stimulation the well encountered mechanical difficulties. The Companyis currently evaluating options for remedial work, including the possibility ofa plug back completion in the Upper Yegua Formation. Caza is the operator of this well and drilled and earned a 29.9% workinginterest (20.9% net revenue interest). Lynch Property - Located in Lea County, New Mexico, the Mud Slide Slim '15'Federal Com. #1 commenced drilling on January 12, 2008 and as previouslyannounced reached a total depth of 13,513 feet on March 2, 2008. Completionoperations in the Morrow formation are underway and the Company expects to bringthis well on stream by May 23, 2008. Caza has earned a 40.0% working interest (31.3% net revenue interest) beforepayout which reduces to a 27.8% working interest (20.9% net revenue interest)after payout of the initial well in this property. Commenting, Mike Ford, CEO of Caza said: "Of five exploration wells drilled by Caza this year so far we have encounteredhydrocarbons in four, and following well completion and tie-in operations expectto have production from at least three of them in the very near future. I amespecially pleased that our recent drilling results have proven that ourgeophysical understanding and the utilization of advanced analysis in directhydrocarbon indicators is working." About Caza: Caza is engaged in the acquisition, exploration, development and production ofhydrocarbons in the Texas Gulf Coast (on-shore), south Louisiana, southeast NewMexico and the Permian Basin of West Texas regions of the United States ofAmerica through its subsidiary, Caza Petroleum, Inc. For further information contact: FOR FURTHER INFORMATION PLEASE CONTACT: Caza Oil & Gas, Inc. John McGoldrick Executive Chairman +1 281 363 4442 Website: www.cazapetro.com OR Noble & Company Limited Nick Naylor / Jamie Boyd Nominated Adviser +44 (0) 20 7763 2200 OR Aquila Financial Ltd. Peter Reilly Financial Public Relations Advisers +44 (0)118 979 4100 In accordance with AIM Rules - Guidance Note for Mining, Oil and Gas Companies,the information contained in this announcement has been reviewed and approved byAnthony B. Sam, Vice President Operations of Caza who is a Petroleum Engineerand a member of The Society of Petroleum Engineers. ADVISORY REGARDING FORWARD-LOOKING STATEMENTS - In the interests of providingCaza shareholders and potential investors with information regarding Caza,including management's assessment of Caza's and its subsidiaries' future plansand operations, certain statements contained in this news release areforward-looking statements or information within the meaning of applicablesecurities legislation, collectively referred to herein as "forward-lookingstatements". Forward-looking statements in this news release include, but arenot limited to: future economic and operating performance; anticipated growthand success of resource plays and the expected characteristics of resourceplays; anticipated production and sales of oil, natural gas and NGLs;anticipated capital investment and the allocation thereof; and anticipatedgrowth in hydrocarbon production. Readers are cautioned not to place undue reliance on forward-looking statements,as there can be no assurance that the plans, intentions or expectations uponwhich they are based will occur. By their nature, forward-looking statementsinvolve numerous assumptions, known and unknown risks and uncertainties, bothgeneral and specific, that contribute to the possibility that the predictions,forecasts, projections and other forward-looking statements will not occur,which may cause the company's actual performance and financial results in futureperiods to differ materially from any estimates or projections of futureperformance or results expressed or implied by such forward-looking statements.These risks and uncertainties include, among other things: volatility of andassumptions regarding oil and gas prices; assumptions based upon the company'scurrent guidance; fluctuations in currency exchange and interest rates; productsupply and demand; market competition; risks inherent in the company's marketingoperations, including credit risks; imprecision of reserve estimates andestimates of recoverable quantities of oil, natural gas and liquids fromresource plays and other sources not currently classified as proved; thecompany's ability to replace and expand oil and gas reserves; the company'sability to generate sufficient cash flow from operations to meet its current andfuture obligations; the company's ability to access external sources of debt andequity capital; the timing and the costs of well and pipeline construction; thecompany's ability to secure adequate product transportation; changes in royalty,tax, environmental and other laws or regulations or the interpretations of suchlaws or regulations; the risk of terrorist threats; risks associated with futurelawsuits and regulatory actions made against the company; and other risks anduncertainties described from time to time in the reports and filings made withsecurities regulatory authorities by Caza. Although Caza believes that the expectations represented by such forward-lookingstatements are reasonable, there can be no assurance that such expectations willprove to be correct. Readers are cautioned that the foregoing list of importantfactors is not exhaustive. Furthermore, the forward-looking statements containedin this news release are made as of the date of this news release, and, exceptas required by law or regulation, Caza does not undertake any obligation toupdate publicly or to revise any of the included forward-looking statements,whether as a result of new information, future events or otherwise. Theforward-looking statements contained in this news release are expresslyqualified by this cautionary statement. This information is provided by RNS The company news service from the London Stock Exchange