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Caza Hits Bone Spring, Avalon Formations at Jazzmaster Property

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   |    Friday,December 20,2013

Caza Oil & Gas, Inc. has reported another strong result for the Company's Bone Spring exploration and development program with the initial test well on the Jazzmaster Property, operated by Endurance Resources, LLC in Lea County, New Mexico.

Jazzmaster Property

The Jazzmaster 17 State No. 4H horizontal Bone Spring test well reached its intended total measured depth of approximately 15,315 feet in the 2^nd Bone Spring Sand interval on October 11, 2013, and was subsequently fracture stimulated beginning on November 12, 2013. Under controlled flowback the producing rates have remained steady. On December 13, 2013, the well produced at a peak 24 hour rate of 458 barrels (bbls) of oil and 470 thousand cubic feet of natural gas, which equates to 536 bbls of oil equivalent (Boe). The well continues to clean up and is producing on a 26/64ths choke at 630 pounds per square inch flowing casing pressure. Oil is already being sold and the produced gas will be connected to local sales infrastructure in the near future.

Log data and core samples were also obtained across the Brushy Canyon, Avalon and 1^st and 3^rd Bone Spring Sand intervals. The data indicates the presence of oil and natural gas across each of these intervals, which is favorable for the future development of these sections.

Caza has a 25.0% working interest (approximately 19.94% net revenue interest) in the Jazzmaster 17 State No. 4H well and the property, which is approximately 480 acres.

West Copperline Property

On November 19, 2013, Caza announced a peak 24 hour gross rate of 800 bbls of oil and 1.21 million cubic feet (MMcf) of natural gas for the West Copperline 29 Fed No. 1H well, which equates to 1,002 Boe. By intentionally holding the well back, the producing rates have remained steady, and the well had a 30 day average of 650 bbls of oil and 1.087 MMcf of natural gas, which equates to 831 Boe.

Caza currently has a 62.5% working interest (approximate 47.25% net revenue interest) in the West Copperline 29 Fed No. 1H well.

Two Mesas Property

The Mewbourne Oil Company operated Two Mesas "7" MP Federal No. 1H horizontal Bone Spring test well reached its intended total measured depth of approximately 12,770 feet in the 2^nd Bone Spring Sand interval on November 30, 2013. The well was fracture stimulated on December 18^th in multiple stages.

Caza currently has a 5.63% working interest (approximately 4.22% net revenue interest) in the Two Mesas "7" MP Federal No. 1H well.

W. Michael Ford, Chief Executive Officer commented: "The Jazzmaster completion is another strong result for the Company's Bone Spring program. We are very pleased with this result and the development opportunities it has created. Like Caza's other Bone Spring properties, the Jazzmaster property has multi-pay potential from the primary zones in the play, which should lead to future development drilling on the property. This property is also in close proximity to existing infrastructure, which means it is already contributing to sales and cashflow only days after coming online."

"We are also very pleased with the results at West Copperline. This is a very strong well, and Caza's immediate focus, is to contract a drilling rig for the development of the West Copperline property. The next well drilled will be the West Copperline 29 State Com No. 3H well, which should spud within the next few weeks. We plan to use our existing funding arrangements to retain the rig in order to drill back-to-back wells on the property. If successful, this should add significant cash flow and reserve value to the Company."