OPERATIONAL UPDATE - SAN JACINTO PROPERTY

February 16, 2012

Caza Oil & Gas, Inc.

CAZA OIL & GAS PROVIDES OPERATIONAL UPDATE

SAN JACINTO PROPERTY

HOUSTON, TEXAS (Marketwire - February 16, 2012) - Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX:CAZ) (AIM:CAZA), the exploration, appraisal, development and production company, is pleased to provide an operational update regarding its San Jacinto Property in Midland County, Texas.

Shareholders will be pleased to note that Caza has now successfully completed the last phase of its engineering evaluation and operations to commingle all pay zones in the Caza Elkins 3401 and 3402 wells, which are both performing on prognosis and as expected. However, even more favourable investment opportunities and attractive recent Wolfberry properties' sale prices have caused management to explore the possibility of divesting the San Jacinto Property. As a result, Caza has listed the property with the Oil & Gas Asset Clearinghouse, a leading oil and gas property marketing and advisory firm, to determine the level of interest in the current market. Caza believes that an orderly marketing of the property is most likely to achieve a desirable valuation but, should forthcoming offers not meet or exceed Caza's internal matrix for return on investment and capital employment, management remains under no obligation to sell the property. If an agreement to sell San Jacinto is ultimately reached with a buyer, Caza intends to use the proceeds to further existing assets and to pursue new opportunities in order to add additional shareholder value through continued investment in suitable properties.

Caza currently has an 85% working interest in the Caza Elkins 3401 well with a 63.75% net revenue interest. In all subsequent wells on the San Jacinto property, including the Caza Elkins 3402 well, Caza will have a 75% working interest and a 56.25% net revenue interest.

Caza's management regularly conducts ongoing reviews and appraisal programs with regard to both its existing asset base and new, unsolicited opportunities. Some deals present themselves in the form of asset swaps or farm-ins, while others include the potential acquisition of multiple properties and existing corporate entities. Caza remains actively involved in reviewing and grading such opportunities on an ongoing basis, and management remains keen to continue growing the Company's asset base and production profile using a variety of means.

W. Michael Ford, Chief Executive Officer commented:

"We are very pleased with the progress made at San Jacinto and recognize that there is a strong and growing market for this type of asset. A successful exit would have the potential to unlock the increased value that we have created at San Jacinto. At present, we are exploring the options and opportunities available to us with the successful sale of this property and will look to further update shareholders as and when there are further developments."

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 +1 832 573 1914/+44 7796 861 892

Cenkos Securities plc

Jon Fitzpatrick +44 20 7397 8900 (London)

Beth McKiernan +44 131 220 6939 (Edinburgh)

M:Communications

Patrick d'Ancona +44 20 7920 2330 (London)

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 statements within the meaning of securities laws. Such information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "strongly", and similar expressions. Information regarding future operations of the San Jacinto Property and the views of potential buyers contained in this news release constitutes forward-looking information within the meaning of securities laws.

Implicit in this information are assumptions regarding: the technical and commercial viability of the Caza Elkins 3401 and 3402 wells, the timing and results of production operations, the market for the San Jacinto Property and the cash flow from, reserves attributable to, and future development/exploitation potential of the San Jacinto Property. Specifically, the Company has assumed that the wells and/or activities will produce positive results. These assumptions, although considered reasonable by the Company, may prove to be incorrect. Readers are cautioned that actual future operations, operating results and economic performance of, and any asset dispositions by, the Company are subject to a number of risks and uncertainties, including operating and drilling risks and general economic, market and business condition risk and actual results could differ materially from a conclusion, forecast or projection in the forward-looking information.

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.