21 Jun 2010 07:00
June 21, 2010
CAZA OIL & GAS, INC. - ANNOUNCES COMMENCEMENT OF
DRILLING OPERATIONS ON BONGO PROSPECT
HOUSTON, TEXAS Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX: CAZ) (AIM: CAZA) is pleased to announce that drilling has commenced on the Company's Bongo Prospect ("Bongo") in Wharton County, Texas. The O.B. Ranch #1 well commenced drilling on June 19, 2010, and is the initial test well on Bongo.
Bongo is a significant, 3-D seismically defined, three-way closure in the Wilcox formation. The O.B. Ranch #1 well is designed to drill to a total depth of approximately 16,000 feet and is expected to encounter multiple, potential, hydrocarbon bearing reservoir sections. It is expected to take approximately 60 days to reach the proposed total depth.
As previously announced, Caza successfully farmed out a portion of its 65% participation interest in Bongo to Verus Investments Limited and Singular Oil & Gas, Inc. Caza retained a 40% working interest in the O.B. Ranch #1 well (approximate net revenue interest 30%).
W. Michael Ford, Chief Executive Officer commented:
"We are very pleased to announce the commencement of drilling operations on the O.B. Ranch #1 well on our Bongo Prospect. Bongo has high-impact potential for Caza and is in line with our refocus toward exploration activities in Texas and Louisiana."
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 |
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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.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.
ADVISORY REGARDING FORWARD LOOKING STATEMENTS
Information in this news release that is not current or historical factual information may constitute forward-looking statements within the meaning of securities laws. Such information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. Information regarding the Bongo Prospect, O.B. Ranch #1 well and/or future exploration and drilling activities contained in this news release constitutes forward-looking information within the meaning of securities laws.
Implicit in this information, particularly in respect of wells, production, flow rates and test rates are assumptions regarding projected revenue and expenses. Specifically, the Company has assumed that these wells will produce positive 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 mechanical, economic, market and business conditions and could differ materially from what is currently expected as set out above. Future flow rates from wells may vary, perhaps materially, and the wells in question may prove to be technically or economically unviable. Any future flow rates will be subject to the risks and uncertainties set out herein.
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 required by applicable securities laws.