CAZA Caza Oil & Gas

RNS Number:0455U
Caza Oil & Gas, Inc.
09 May 2008

May 9, 2008



       CAZA OIL & GAS, INC. ("Caza" or the "Company") (TSX:CAZ)(AIM:CAZA)



                       Exploration and Operational Update



HOUSTON, TEXAS (May 9, 2008) Caza is pleased to announce that exploration wells
on its Eland Property and Puku Property, both located in Wharton County, Texas,
have successfully encountered hydrocarbons.



The following operational update covers current well activities.



Eland Property - Located in Wharton County, Texas, the Hinton #1501 well
commenced drilling on April 19, 2008 and reached a total depth of 6,712 feet on
April 25, 2008.  Petrophysical logs were run on April 25, 2008, production
casing was set at a depth of 6,700 feet and the Frio interval from 5,024 to
5,039 feet was perforated on May 5, 2008.  The Hinton #1501 well flowed natural
gas and was shut in to conduct a gravel pack completion.  The Company is
currently building its production facility and is preparing to tie the well back
to a nearby gas trunkline.  First sales are expected to occur on or about May
20, 2008.



Caza is the operator of this well and has a 35.0% working interest (25.0% net
revenue interest).



Puku Property - Located in Wharton County, Texas, the Andel #2201 well commenced
drilling on April 29, 2008 and reached a total depth of 6,310 feet on May 6,
2008.  Petrophysical logs were run on May 6, 2008 and analysis of the data
indicates the well encountered Frio sand pay at depths ranging from 5,670 feet
to 5,836 feet. The Company has confirmed hydrocarbon saturation and pressure
data from several zones.  Production casing was set on May 7, 2008 and
completion operations are expected to commence around May 16, 2008.



Caza is the operator of this well and has a 35.0% working interest (26.52% net
revenue interest).



Wilcox 116 Property - Located in Wharton County, Texas, the Jonell Cerny gas
unit #1 well commenced drilling on January 15, 2008 and as previously announced
reached a total depth of 16,510 feet on March 3, 2008. Completion operations
began on April 2, 2008 with a dual zone multistage completion. Following
fracture stimulation the well encountered mechanical difficulties.  The Company
is currently evaluating options for remedial work, including the possibility of
a plug back completion in the Upper Yegua Formation.



Caza is the operator of this well and drilled and earned a 29.9% working
interest (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 as previously
announced reached a total depth of 13,513 feet on March 2, 2008.  Completion
operations in the Morrow formation are underway and the Company expects to bring
this well on stream by May 23, 2008.



Caza has earned a 40.0% working interest (31.3% net revenue interest) before
payout which reduces to a 27.8% working interest (20.9% net revenue interest)
after payout of the initial well in this property.





Commenting, Mike Ford, CEO of Caza said:



"Of five exploration wells drilled by Caza this year so far we have encountered
hydrocarbons in four, and following well completion and tie-in operations expect
to have production from at least three of them in the very near future. I am
especially pleased that our recent drilling results have proven that our
geophysical understanding and the utilization of advanced analysis in direct
hydrocarbon indicators is working."


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.



For further information contact:

FOR FURTHER INFORMATION PLEASE CONTACT:



Caza Oil & Gas, Inc.

John McGoldrick

Executive Chairman

+1 281 363 4442

Website: www.cazapetro.com



OR



Noble & Company Limited

Nick Naylor / Jamie Boyd

Nominated Adviser

+44 (0) 20 7763 2200



OR



Aquila Financial Ltd.

Peter Reilly

Financial Public Relations Advisers

+44 (0)118 979 4100



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; anticipated growth
and success of resource plays and the expected characteristics of resource
plays; anticipated production and sales of oil, natural gas and NGLs;
anticipated capital investment and the allocation thereof; and anticipated
growth in hydrocarbon 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 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; 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.




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

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