Commencement of Production on O.B. Ranch#1 Well

December 15, 2010

Caza Oil & Gas, Inc.

CAZA OIL & GAS ANNOUNCES

COMMENCEMENT OF PRODUCTION ON O.B. RANCH #1 WELL

HOUSTON, TEXAS (Marketwire - December 15, 2010) - Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX: CAZ) (AIM: CAZA) is pleased to advise that permanent production facilities are in place, and the O.B. Ranch #1 well on the Bongo Prospect in Wharton County, Texas was placed on production on 13 December 2010.

Initial production rates through the permanent facilities are approximately 2.48 million cubic feet of natural gas per day, 400 barrels of oil per day and 190 barrels of water per day in total. The well is producing on a 9/64th choke at 6,100 pounds per square inch flowing tubing pressure and still has approximately 750 barrels of fracture fluid to recover. The production rates are being closely monitored, and Caza will provide an update once the rates and flowing tubing pressure have stabilised.

Caza has acquired an additional 2.0% working interest from an internal partner increasing our working interest to 45.28% and our net revenue interest to approximately 33.51% in the well and production. 

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

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", "potential", "intend", "could", "might", "should", "believe", "develop", "test" and similar expressions. Information regarding the Bongo Prospect, O.B. Ranch #1 well and/or production or flow rates contained in this news release constitute forward-looking information within the meaning of securities laws.

Implicit in this information, particularly in respect of "Bongo Prospect", "O.B. Ranch #1 well", "completion" and "initial production rates" are assumptions regarding projected revenue and expenses and well performance. Specifically, the Company has assumed that the wells, prospects 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 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 the OB Ranch #1 well is not complete. Future flow rates from the well may vary, perhaps materially, and the well 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 may be required by Securities laws.