CAZA.L Regulatory News (CAZA)

September 28, 2011

Caza Oil & Gas, Inc.

CAZA OIL & GAS PROVIDES OPERATIONAL UPDATE

HOUSTON, TEXAS (Marketwire - September 28, 2011) - Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX:CAZ) (AIM:CAZA), the U.S. focused exploration, appraisal, development and production company, is pleased to provide operational results for the San Jacinto, Bongo, Windham and Hite Offset properties.

Operational Highlights

·; Caza increases its net, daily production by approximately 88% over Second Quarter rates from 199 boe/d to approximately 374 boe/d;

·; Caza Elkins 3401 and 3402 wells producing combined, gross rates of 219 bbl/d of oil and 356 Mcf/d of natural gas;

·; O.B. Ranch #1 and #2 wells producing combined, gross rates of 34 bbl/d of condensate and 661 Mcf/d of natural gas;

·; Caza 158 #1, 158 #2, 158 #3 and 162 #1 wells producing combined, gross rates of 80 bbl/d of oil and 151 Mcf/d of natural gas;

·; All near term wells remain fully funded.

San Jacinto Property, Midland County, Texas. As previously announced, the Caza Elkins 3401 and 3402 wells reached target depths of 11,854 feet and 11,852 feet respectively. Log data from both wells indicated multiple potential pay sands for both oil and gas in the Spraberry, Dean, Wolfcamp, Strawn, Atoka and Mississippian formations. The wells were fracture stimulated in all potential pays, except the Spraberry, which will be stimulated at a later date, and have been flowing back frac fluids. The wells are currently performing better than expected and the flow back is still ongoing. Current gross producing rates for the 3401 well are 151 bbl/d of oil and 172 Mcf/d of natural gas. Current gross producing rates for the 3402 well are 68 bbl/d of oil and 184 Mcf/d of natural gas. Management is very pleased with these results, as they have exceeded expectations to date and contributed to Caza's increased production profile.

Caza has five additional proven undeveloped locations to drill on the San Jacinto property, and plans to drill the next two wells in the fourth quarter. The remaining three locations should be drilled in the first and second quarters of 2012, subject to production results and rig availability. Caza's net cost to drill and complete each of the remaining wells is approximately $1.95MM per well. Caza will update the market once drilling rigs have been secured for the next two wells.

Caza currently has an 85% working interest in the Caza Elkins 3401 well with a 63.75% net revenue interest. In all subsequent wells on the San Jacinto property, including the Caza Elkins 3402 well, Caza will have a 75% working interest and a 56.25% net revenue interest.

Bongo Property, Wharton County, Texas. As previously announced the O.B. Ranch #2 well was fracture stimulated at the end of July 2011, and has been on an extended well test in order to flow back frac fluids. The well is currently producing at gross rates of 22 bbl/d of condensate, 475 Mcf/d of natural gas and 310 bbl/d of water.

Three potentially productive Cook Mountain sand intervals were identified from the log data between 12,535-12,563 feet, 12,775-12,790 feet and 12,936-12,948 feet and fracture treated. The well initially produced at gross rates of 24 bbl/d of condensate and 1,753 Mcf/d of natural gas along with frac fluids. During the extended well test, the well started flowing back fresh (low salinity) formation water in addition to condensate, natural gas and frac fluids. Fresh formation water is anomalous at these depths in this area, and Caza has been attempting with the extended well test, and other means, to identify and isolate its point of ingress. The produced water in the offsetting O.B. Ranch #1 well had higher salinity than the water produced from the O.B. Ranch #2 well. Caza recently set a plug below the upper set of perforations in the O.B. Ranch #2 well to permanently abandon both sets of lower perforations at the intervals between 12,775-12,790 feet and 12,936-12,948 feet in an attempt to reduce water production. This operation has successfully reduced water production by over 50%, while maintaining current levels of condensate and natural gas production.

The combination of recent production data, whole core analysis, well logs and seismic data indicate that the Cook Mountain formation is complex in nature with sands intermittently present at different intervals throughout the formation. Both wells are commercial, however, production data from the O.B. Ranch #1 and #2 wells seems to indicate that the reservoir is more limited in nature than can be seen on seismic data alone. This data, when coupled with the fresh formation water production at O.B. Ranch #2, has increased the commercial and technical risk of the project. The shallower Frio and Yegua formations remain untested and behind pipe at approximately 5,530 feet and 9,000 feet respectively. Caza has other Cook Mountain prospects in the area that will continue to be evaluated and ranked against other prospects in our diverse portfolio.

Caza currently has a 45.28% working interest and an approximate 33.51% net revenue interest in the Bongo property and wells.

Windham Property, Upton County, Texas. The Caza 158 #3 well on the Windham property reached its target depth of 9,824 feet in June 2011, and Caza elected to participate in the operator's proposal to complete the well. The well has been fracture stimulated across all potentially productive intervals seen on the logs, which include the Spraberry/Wolfcamp, Penn and Strawn formations and is currently producing at gross rates of 15 bbl/d of oil and 51 Mcf/d of natural gas. The Caza 158 #3 was the fourth well drilled and completed on this property. Combined gross production rates for the Caza 158 #1, 158 #2, 158 #3 and 162 #1 wells are currently 80bbl/d of oil and 151 Mcf/d of natural gas. These wells are still cleaning up and recovering frac fluids.

Caza currently has a 25.0% working interest and an 18.75% net revenue interest in the Windham property and wells.

Hite Offset Property, Wharton County, Texas. Caza is currently re-entering the Caza McMillan #1 well to test the Yegua 9,650 sand. This is the Yegua interval producing in the nearby Matthys-McMillan #2 well on the same property. Yegua sands are shallower and easier to predict than the Cook Mountain sands in this area, making them more attractive to Caza from the standpoint of risk. The Matthys-McMillan #2 has cumulative gross, Yegua production to date of 35,320 bbls of oil and 86,550 Mcf of natural gas, and is currently producing an average gross rate of 70 bbl/d of oil and 112 Mcf/d of natural gas. Caza hopes to have similar results from the Caza McMillan #1 well.

Caza currently has a 42.53% working interest and a 31.05% net revenue interest in the Caza McMillan #1 well.

Lewis Prospect, Vermilion Parish, Louisiana, and Tiree Prospect, Acadia Parish, Louisiana. Post Arran, Caza acquired a supplemental license to the most recent pre-stack depth migrated ("PSDM") application covering our Bol-Mex merge data area in order to further evaluate current prospects and leads in this area, and to also identify new prospective areas for future leasing/drilling. The PSDM data has helped to strengthen the technical aspects of Lewis prospect, which we anticipate drilling with a third party operator in late fourth quarter 2011, or early first quarter 2012, subject to well elections and the permitting process in Louisiana. Lewis is targeting the Discorbis formation, which is different than that tested at Arran.

Management believes the PSDM data along with other technical data from the Marian Baker #1 well at Arran have combined to increase risk at Tiree, which targets the Nonion Struma formation drilled at Arran, and therefore does not intend to drill the property in the near term. However, several inventoried leads (other than Lewis) have held up to technical scrutiny and new leads have been identified, which are all being ranked and considered for leasing/drilling.

Atchafalaya Bay, St. Mary Parish, Louisiana. Caza also acquired a supplemental license to the most recent PSDM application covering our Atchafalaya Bay data in order to evaluate the area for future leasing/drilling. Several significant Cib Op discovery wells have been drilled in this area, and Caza is currently evaluating several Cib Op leads that are in various stages of development.

W. Michael Ford, Chief Executive Officer commented:

"We are very pleased with the continued progress of increasing our production. The drilling results seen on the initial two wells on the San Jacinto property are above expectations. With another 5 potential locations to be drilled and with our significant interest in this property, we will benefit significantly from the production, cash flow and proven reserves associated with the wells. While the O.B. Ranch wells are commercial, they have clearly underperformed. However, there is other Cook Mountain and Yegua potential in the area, which continues to be evaluated. The non-operated Windham wells are still cleaning up and have combined with the Caza Elkins and O.B. Ranch wells to increase Caza's net production by approximately 88%. Bringing these wells on line has added long term production, proven reserves and additional cash flow to Caza's already solid platform. We hope to increase production further with the Caza McMillan #1 well and additional drilling on the San Jacinto property in the near term, while continuing to develop future projects of varying risk profiles in the Permian Basin and South Louisiana. We have a good portfolio of projects, adequate cash to execute our drilling plan, and I look forward to updating the market on Caza's exploration and production activities in the near future."

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:

Caza Oil & Gas, Inc.

Michael Ford, CEO +1 432 682 7424

John McGoldrick, Chairman +1 832 573 1914/+44 7796 861 892

Cenkos Securities plc

Jon Fitzpatrick +44 20 7397 8900 (London)

Beth McKiernan +44 131 220 6939 (Edinburgh)

M: Communications

Patrick d'Ancona +44 20 7920 2330 (London)

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" and similar expressions. In particular, information regarding the depth, timing and location of future drilling, intended completion operations, availability of funds to support the Company's drilling program, future production, future cash flow, future reserves, intended production testing, future results from wells and the Company's future working interests and net revenue interests in properties 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. In addition, the geotechnical analysis and engineering to be conducted in respect of certain wells described in this press release is not complete. Future flow rates from each of the wells disclosed in this press release will vary, perhaps materially, and 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 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.

GLOSSARY OF ABBREVIATIONS

Boe or Mcfe may be misleading, particularly if used in isolation. A boe conversion of 6 Mcf: 1 bbl or a Mcfe conversion ratio of 1 bbl : 6 Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.