CAZA.L Regulatory News (CAZA)

November 15, 2010

CAZA OIL & GAS, INC.

("Caza" or the "Company")

Announces Placing to raise approximately £18.9 million (C$30.6 million)

Houston, Texas (November 15, 2010): Caza (AIM: CAZA, TSX: CAZ) is pleased to announce that it has conditionally placed 45,000,000 common shares (the "Placing Shares") at a price of 42 pence (approximately C$0.68) per share (the "Placing Price"), to raise approximately £18.9 million (gross) (C$30.6 million) from investors in the United Kingdom (the "Placing").

The Placing Price represents a discount of approximately 8.9 per cent. to the volume weighted average share price of approximately 46 pence per common share for the 30 days to and including 12 November 2010, being the last practicable dealing day prior to the publication of this announcement. The Placing Shares will represent approximately 27.4 per cent. of the Company's enlarged share capital.

The Placing Shares have been conditionally placed by Cenkos Securities plc subject, amongst other things, to admission of the Placing Shares to trading on AIM ("Admission") and the approval of the Toronto Stock Exchange (the "TSX"). Application will be made to London Stock Exchange plc for Admission. Admission is expected to occur at 8.00 am (London, GMT) on 19 November 2010.

Use of Proceeds

Following recent exploration success, Caza is moving forward with developing its properties and drilling its prospects. The Company intends to use the net proceeds of the Placing of approximately £17.9 million (C$29.0 million) for drilling, reworking and exploration as follows:

·; accelerate the drilling program for an initial three development wells on the Bongo property and one additional exploration test in the Cook Mountain play, subject to successful fracture stimulation of the OB Ranch #1 well;

·; carry out a workover program on several Permian Basin wells and a limited development program at the Windham Wolfberry property;

·; re-enter a Yegua target on the Matthys-McMillan property; and

·; acquire a greater percentage interest in the Arran and Tiree prospects and drill exploratory wells on each prospect. The Company regards Arran and Tiree as multi-segment prospects, and believes the prospective reservoirs are supported by AVO data within a proven play fairway.

The Company also intends to use part of the net proceeds of the Placing for certain contingency drilling, including on the Lewis prospect, lease acquisitions and general corporate purposes.

Arran Prospect

This property is in the Bolmex trend in southwest Louisiana. The Company is planning to drill the Marian Baker #1 well in Q4 2010 to a proposed depth of sixteen thousand feet, targeting a prospect with four-way closure. Netherland, Sewell & Associates, Inc. ("NSAI") has given a gross best estimate of 176.8 Bcf (gas) and 3.0 MMbbl (oil) of unrisked prospective resources for the Arran prospect. Caza currently has a 25% working interest before casing point, a 35.94% working interest after casing point and an approximate net revenue interest of 26.24% in the Marian Baker #1 well.

Tiree Prospect

This property is also in the Bolmex trend in southwest Louisiana. The Company is planning to drill a well in Q1 2011 to a proposed depth of sixteen thousand feet. NSAI has given a gross best estimate of 75.6 Bcf (gas) and 1.4 MMbbl (oil) of unrisked prospective resources for the Tiree prospect, which is on the flank of a vertical salt weld. Caza currently has a 25% working interest before casing point, a 32.81% working interest after casing point and an approximate net revenue interest of 23.95%.

Lewis Prospect

Caza currently has a 50% working interest in this property, which is also in the Bolmex trend in southwest Louisiana. Once leasing is complete, the Company envisages drilling a well on the property in Q2 2011. NSAI has given a gross best estimate of 42.2 Bcf (gas) and 0.8 MMbbl (oil) of unrisked prospective resources for the Lewis prospect.

The table below shows NSAI's estimates of the gross (100%) unrisked prospective resources for its Arran, Tiree and Lewis prospects located in Acadia and Vermillion Parishes, Louisiana:

In addition, Caza has estimated proved plus probable and possible gross reserves of 3.2 Bcf (gas) and 0.4 MMbbl (oil) in the Yegua formation for the Matthys-McMillan #2 well, and approximately 45 Bcf (gas) and 0.15 MMbbl (oil) for the Bongo Cook Mountain anomaly. The Company is also leasing additional Yegua/Cook Mountain opportunities in Wharton County, Texas, for which Caza has estimated, a gross best estimate unrisked 50 Bcf (gas) prospective resources.

W. Michael Ford, Caza's Chief Executive Officer commented:

"I am delighted to announce this conditional fundraising, which was over subscribed, and thank both our new and existing shareholders for their support ahead of our active exploration and development program planned for 2011. We believe our workover program and current developments should grow production levels in the near term and the revenue generated should contribute towards further exploration and development activity. We also intend to reprocess additional seismic data to identify further targets."

Following Admission, the Company expects to have 164,319,000 common shares outstanding, and the Placing Shares will represent approximately 27.4 per cent. of the Company's outstanding share capital. The figure of 164,319,000 common shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change their interest in, the Company under the FSA's Disclosure and Transparency Rules.

The Placing Shares have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and may not be offered, sold or delivered, directly or indirectly, in or into the United States or to or for the account or benefit of any U.S. person unless the securities are registered under the Securities Act or an exemption from the registration requirements of the Securities Act is available. This press release does not constitute an offer to sell or solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful.

For further information, please contact:

Caza Oil & Gas, Inc.

Michael Ford, CEO +1 432 682 7424John McGoldrick, Chairman +1 832 573 1914/+44 7796 861 892www.cazapetro.com

Cenkos Securities plc

Jon Fitzpatrick +44 20 7397 8900Beth McKiernan +44 131 220 6939

Conduit PR

Jonathan Charles +44 20 7429 6611Ed Portman

ABOUT CAZA

Caza is engaged in the acquisition, exploration, development and production of hydrocarbons in the Texas Gulf Coast (onshore), south Louisiana, southeast New Mexico and the Permian Basin of West Texas regions through its subsidiary, Caza Petroleum, Inc. For additional information on Caza, visit www.cazapetro.com.

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

In accordance with the 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 Operation 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 prospects/properties and/or wells contained in this news release constitutes forward-looking information within the meaning of securities laws.

Furthermore, statements relating to "reserves" or "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that reserves or resources described can be recovered and profitable in the future.

Implicit in this information are assumptions regarding: the timing of drilling operations, reservoir size and the recoverability of hydrocarbons therefrom, the performance of third party obligations under joint exploration/operating agreements governing the prospects/properties and/or wells and elections in connection therewith, project revenue and expenses and well performance. Specifically, the Company has assumed that these agreements, prospects/properties/wells and/or activities 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 economic, market and business conditions and the other risks described in this press release 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 the Company may elect to, it is under no obligation and do not undertake to update this information at any particular time except as may be required by securities laws.

ADVISORY REGARDING OIL AND GAS INFORMATION

This news release discloses certain estimates of prospective resources applicable to the Company's properties. Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.

Certain disclosure in this news release constitutes "anticipated results" for the purposes of National Instrument 51-101 of the Canadian Securities Administrators because the disclosure in question may, in the opinion of a reasonable person, indicate the potential value or quantities of resources in respect of the Company's resources or a portion of its resources. Without limitation, the anticipated results disclosed in this news release include estimates of volume, pay thickness, flow rates and hydrocarbon content attributable to the resources of the Company. Anticipated results are subject to certain risks and uncertainties, including those described above and various geological, technical, operational, engineering, commercial and technical risks. In addition, the geotechnical analysis and engineering to be conducted in respect of such resources is not complete. Such risks and uncertainties may mean the estimates of resources disclosed resources in question uneconomic or may cause the anticipated results disclosed herein to be inaccurate. Actual results may vary, perhaps materially.

This news release also discloses certain estimates of possible reserves. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.

The estimates of reserves set forth herein for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation.

GLOSSARY OF ABBREVIATIONS

In this news release, the abbreviations set forth below have the following meanings:

All amounts in Canadian Dollars are stated applying the exchange rate of £1.00: C$1.6173 stated by Reuters at www.reuters.com as at close of dealing on 11 November 2010 in London.