Operational Update

June 7, 2012

Caza Oil & Gas, Inc.

CAZA OIL & GAS PROVIDES OPERATIONAL UPDATE

HOUSTON, TEXAS (Marketwire - June 7, 2012) - Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX: CAZ) (AIM: CAZA) is pleased to provide an operational update on the Bradley 29 Prospect in Eddy County, New Mexico.

The Bradley "29" Fed Com No. 3H horizontal well has reached its total measured depth of approximately 12,690 feet, which includes a lateral open-hole section of 4,165 feet. The lateral section was drilled in the target objective 2nd Bone Spring sand. After correlating and reviewing log data, which indicates multiple shows for oil and natural gas throughout the 2nd Bone Spring lateral, Caza has elected to participate with the operator's recommendation to frac and complete the well in the 2nd Bone Spring sand. The frac job is scheduled to occur on or around June 14, 2012. Caza has a 20% working interest and a 15% net revenue interest in the Bradley "29" Fed Com No. 3H well.

The Bone Spring formation in Lea and Eddy Counties, New Mexico, contains multiple potential pay zones for oil and liquids-rich natural gas. Caza's current prospects in the horizontal Bone Spring play are Lynch, Forehand Ranch, Lennox, Copperline, Mad River, Bradley 29, Two Mesas and Quail Ridge. The Company has acquired approximately 4,000 net acres in the play to date. The recently released reserve report prepared by Netherland, Sewell & Associates, Inc. as of December 31, 2011, assigned 100 viable Bone Spring horizontal drilling locations to Caza's current leasehold position with total proved plus probable plus possible net reserves to the Company of 16.7 million barrels of oil equivalent ("MMboe") (proved plus probable net reserves of 9.1 MMboe). This did not include locations or reserves for the Bradley 29, Two Mesas or Quail Ridge properties.

W. Michael Ford, Chief Executive Officer commented:

"We are very pleased with the results from the Bradley well. The well was drilled on schedule and according to plan by the operator. This was Caza's first foray into horizontal Bone Spring drilling, and we look forward to completing this well and bringing it online in the near future. We are also looking forward to beginning the initial wells at some of Caza's other Bone Spring projects. We are currently making preparations to drill Copperline, Forehand Ranch and Lennox prospects. Once these operations commence, we will inform the market accordingly."

About Caza

Caza is engaged in the acquisition, exploration, development and production of hydrocarbons in the following regions of the United States of America through its subsidiary, Caza Petroleum, Inc.: Texas and Louisiana Gulf Coast (on-shore), and the Permian Basin (West Texas and Southeast New Mexico).

For further information, please contact:

Caza Oil & Gas, Inc.

Michael Ford, CEO +1 432 682 7424

John McGoldrick, Chairman +44 7796 861 892

Cenkos Securities plc

Jon Fitzpatrick +44 20 7397 8900 (London)

Beth McKiernan +44 131 220 6939 (Edinburgh)

VSA Capital Limited

Andrew Raca +44 (0)20 3005 5004

Malcolm Graham-Wood +44 (0)20 3005 5012

M:Communications

Patrick d'Ancona +44 20 7920 2330

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 timing and results of intended completion operations 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.

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.

The estimates of reserves for individual project areas may not reflect the same confidence level as estimates of reserves for all properties, due to the effects of aggregation. Boe may be misleading, particularly if used in isolation. A boe conversion of six thousand cubic feet: 1 barrel 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.