CAZA Caza Oil & Gas

RNS Number:1715O
Caza Oil & Gas, Inc.
18 February 2008

18 February 2008



                 Caza Oil & Gas, Inc. ("Caza" or the "Company")



                         Farmout Agreement with Sojitz



Houston, Texas (February 18, 2008) - Caza (CAZA AIM SYMBOL/CAZ TORONTO SYMBOL)
is pleased to announce that it has entered into a farmout agreement with Sojitz
Gulf Exploration, Inc. ("Sojitz"), a subsidiary of the Sojitz Corporation of
Japan, on the Wilcox 116 Property in South Texas.



Under the terms of the agreement Sojitz has acquired a 10.00% interest in the
Wilcox 116 Property. In return Sojitz will bear 13.33% of the drilling costs to
casing point of the Jonell Cerny Gas Unit #1 test well (the "Cerny Well"),
11.43% of all costs from casing point to completion and 10.00% of all costs on
the property thereafter.  Sojitz will also pay US$64,625 of back costs
associated with this property to Caza.  "Casing point" is the point at which
operations to complete the well as a producer are commenced.



The Wilcox 116 Property is located in Wharton County, Texas.  Within this
property, the Cerny Well commenced drilling on 15 January 2008, and is
anticipated to take up to 60 days to drill to a depth of 16,500 feet.  The Cerny
Well is targeting gas in the Deep Wilcox Sands, which are analogous to sands
currently producing in Caza's nearby Matthys-McMillan Gas Unit #1 well (the 
"Matthys-McMillan Well"). The Cerny Well, if successful, will establish numerous
development locations.  The dry well cost of the Cerny Well is estimated to be
US$8.3 million.



Caza, through its subsidiary, Caza Petroleum, Inc., is the operator of the
Wilcox 116 Property and, following the disposal noted above, now holds a right
to earn a 43.21% working interest (which reduces to a 37.81% working interest
after completion of the initial well with a corresponding 28.35% net revenue
interest).



In April 2007, Caza entered into a farmout agreement with Sojitz on the Hite
Offset Property to drill the Matthys-McMillan Well in Wharton County, Texas.
Under the terms of that agreement Sojitz paid 9.86% of the drilling costs to
casing point of the Matthys-McMillan Well to earn a 7.39% interest in this
property thereafter.



The Hite Offset Property and Matthys-McMillan Well are located in Wharton
County, Texas. Drilling began on the Matthys-McMillan Well in March 2007, and it
was drilled to a depth of 17,700 feet. In September 2007 this well was
perforated in the Upper Wilcox section and is currently flowing at 4.6 MMcf/d.
Caza holds a 19.62% working interest (14.32% net revenue interest) in the Hite
Offset Property.



Mike Ford, Chief Executive Officer of the Company, commented:



"In line with our strategy, during 2008 we intend to mainly focus our efforts on
the Wharton West Wilcox area and this transaction consolidates our relationship
with Sojitz following our recent collaboration on the successful
Matthys-McMillan Well."





For further information contact:



John McGoldrick, Executive Chairman, Caza Oil & Gas, Inc.       +1 281 363 4442



Nick Naylor / Jamie Boyd, Noble & Company Limited              +44 (0) 20 7763 2200
(Nominated Adviser and Joint Broker)



Peter Reilly, Aquila Financial Ltd                             +44 (0) 20 7202 2601
(Financial Public Relations Advisers)



www.cazapetro.com



About Caza



Caza is engaged in the acquisition, exploration, development and production of
hydrocarbons in the Texas Gulf Coast (on-shore), south Louisiana, southeast New
Mexico and the Permian Basin of West Texas regions of the United States of
America 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 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 - In the interests of providing
Caza shareholders and potential investors with information regarding Caza,
including management's assessment of Caza's and its subsidiaries' future plans
and operations, certain statements contained in this news release are
forward-looking statements or information within the meaning of applicable
securities legislation, collectively referred to herein as "forward-looking
statements." Forward-looking statements in this news release include, but are
not limited to: future economic and operating performance (including per share
growth, cash flow and increase in net asset value); future drilling costs;
anticipated growth and success of resource plays and the expected
characteristics of resource plays; free cash flow which may be generated in 2008
and beyond, and potential uses for such free cash flow; anticipated production
and sales of oil, natural gas and NGLs in 2008; anticipated impact and success
of Caza's price hedging strategy, if any; anticipated costs; anticipated prices
for oil and natural gas; anticipated capital investment in 2008 and the
allocation thereof; anticipated capital inflation; anticipated capital and
operating cost efficiencies; anticipated growth in hydrocarbon production;
forecast cash flow for 2008 and the anticipated ability to meet guidance
targets.



Readers are cautioned not to place undue reliance on forward-looking statements,
as there can be no assurance that the plans, intentions or expectations upon
which they are based will occur. By their nature, forward-looking statements
involve numerous assumptions, known and unknown risks and uncertainties, both
general 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 future
periods to differ materially from any estimates or projections of future
performance or results expressed or implied by such forward-looking statements.
These risks and uncertainties include, among other things: volatility of and
assumptions regarding oil and gas prices; assumptions based upon the company's
current guidance; fluctuations in currency exchange and interest rates; product
supply and demand; market competition; risks inherent in the company's marketing
operations, including credit risks; imprecision of reserve estimates and
estimates of recoverable quantities of oil, natural gas and liquids from
resource plays and other sources not currently classified as proved; the
company's ability to replace and expand oil and gas reserves; the company's
ability to generate sufficient cash flow from operations to meet its current and
future obligations; the company's ability to access external sources of debt and
equity capital; the timing and the costs of well and pipeline construction;
blowouts, fires, explosions and other sudden emergencies; drilling difficulties,
such as lost circulation; the company's ability to secure adequate product
transportation; changes in royalty, tax, environmental and other laws or
regulations or the interpretations of such laws or regulations; the risk of
terrorist threats; risks associated with future lawsuits and regulatory actions
made against the company; and other risks and uncertainties described from time
to time in the reports and filings made with securities regulatory authorities
by Caza.



Although Caza believes that the expectations represented by such forward-looking
statements are reasonable, there can be no assurance that such expectations will
prove to be correct. Readers are cautioned that the foregoing list of important
factors is not exhaustive.  Furthermore, the forward-looking statements
contained in this news release are made as of the date of this news release,
and, except as required by law or regulation, Caza does not undertake any
obligation to update publicly or to revise any of the included forward-looking
statements, whether as a result of new information, future events or otherwise.
The forward-looking statements contained in this news release are expressly
qualified by this cautionary statement.



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




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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