CAZA.L Regulatory News (CAZA)

31 Mar 2008 07:02

Caza Oil & Gas, Inc.31 March 2008 NEWS RELEASE TRANSMITTED BY MARKETWIRE FOR: CAZA OIL & GAS, INC. TSX SYMBOL: CAZ AIM SYMBOL: CAZA March 31, 2008 CAZA OIL & GAS, INC. ANNOUNCES RESULTS OF RECENT DRILLING Wilcox 116 and Lynch Properties HOUSTON, TEXAS--(Marketwire - March 31, 2008) - Caza Oil & Gas, Inc.(TSX:CAZ)(AIM:CAZA) is pleased to announce that exploration wells on its Wilcox 116Property in Wharton County, Texas and the Lynch Property, in Lea County, NewMexico both successfully encountered gas and the Company expects to bring bothwells into production following completion and tie-in to gathering systems. Wilcox 116 Property - Located in Wharton County, Texas, the Jonell Cerny gasunit #1 well commenced drilling on January 15, 2008 and reached a total depth of16,510 feet on March 3, 2008. Petrophysical logs were run on March 8, 2008 andanalysis of the data indicates the well encountered Wilcox Sand pay at multipleintervals from 13,500 feet to 16,400 feet. Completion operations are planned tocommence around April 9, 2008 pending pipeline connection into the gatheringsystem. The sands targeted by this well are currently producing in Caza's nearbyMatthys-McMillan well. The success of this well would establish numerousdevelopment locations on the Wilcox 116 Property. Caza is the operator of thiswell and drilled and earned a 29.9% working interest (which reduces to a 27.8%working interest after completion of the initial well and a corresponding 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 reached a total depthof 13,513 feet on March 2, 2008. Petrophysical logs were run on March 3, 2008and analysis of the data indicates the well encountered Morrow Sand pay atmultiple intervals from 13,040 feet to 13,160 feet. Completion operations areplanned to commence around May 6, 2008 pending a pipeline connection into thegathering system. 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. Mike Ford, Chief Executive Officer of the Company, commented:"We are delightedto be able to report positive news about these exploration wells and lookforward to updating shareholders on initial flow rates when operations arecompleted. Successful production from these wells will create additionallow-risk drilling opportunities which we believe will provide future growth inproduction, cash flow and shareholder value." 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. 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; anticipated growth inhydrocarbon 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. FOR FURTHER INFORMATION PLEASE CONTACT: Caza Oil & Gas, Inc.John McGoldrickExecutive Chairman(281) 363-4442Website: www.cazapetro.com OR Noble & Company LimitedNick Naylor / Jamie BoydNominated Adviser and Joint Broker+44 (0) 20 7763 2200 OR Aquila Financial Ltd.Peter ReillyFinancial Public Relations Advisers+44 (0) 118 979 4100 The Toronto Stock Exchange has neither approved nor disapproved the informationcontained herein. INDUSTRY: Energy and Utilities-Oil and Gas SUBJECT: DRO This information is provided by RNS The company news service from the London Stock Exchange