3 Sep 2010 07:00
September 3, 2010
CAZA OIL & GAS, INC. - ANNOUNCES COMMENCEMENT OF
DRILLING OPERATIONS ON WINDHAM PROSPECT
HOUSTON, TEXAS Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX: CAZ) (AIM: CAZA) is pleased to announce that scheduled drilling has commenced on the initial test well at the Windham (Wolfberry) prospect in Upton County, Texas. Caza's partner and the operator on this project, Devon Energy Production Company, L.P. ("Devon"), commenced drilling of the Caza 158 #1 test well (the "Well") this week.
The Well is designed to drill to approximately 11,500 feet to test the Spraberry and Wolfcamp (Wolfberry) formations and should take approximately 35 days to drill. The prospect covers approximately 1,318 net acres and, given success, could initially be developed on 80 acre spacing units.
As previously announced, Devon can earn 75% of Caza's 100% participation interest in the Well under the exploration agreement between the parties. After completion of the 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, Caza's Chief Executive Officer commented:
"We are very pleased to announce the commencement of drilling operations for the initial well on the Windham prospect. This is an oil project with good upside potential for Caza. We are also delighted to have an experienced operator in Devon leading the project."
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:
| Michael Ford, CEO, Caza Oil & Gas, Inc. John McGoldrick, Chairman, Caza Oil & Gas, Inc. Tim Feather/Richard Baty, Westhouse Securities Limited | +1 432 682 7424 +18325731914/+447796861892 +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", "upside", "potential", "targeting", "intend", "could", "might", "should", "believe", "if successful" and similar expressions. Information regarding the operations to be conducted on the Windham Wolfberry Prospect and/or the Well, 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 joint exploration agreement governing the prospect area associated with the Well, 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.