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OIL AN D G A S Caza Oil & Gas reports New Mexico well flowing Caza Oil & Gas, Inc. [CAZ-TSX; CAZAAIM] has provided a production update for the its Caza Ridge horizontal Bone Spring well on the Copperline prospect in Lea County, New Mexico. As previously announced, the Caza Ridge 14 State No.3H horizontal Bone Spring well was fracture stimulated in 12 stages and has been flowing back. Under controlled flowback, the producing rates have continued to increase each day, and during the past 24 hours (November 5-6, 2012) the well produced a total of 844 barrels (bbls) of oil, 1,063 thousand cubic feet of natural gas, which equates to 1,021 bbls of oil equivalent, and 667 bbls of frac fluid. The well continues to clean up and recovered hydrocarbons and frac fluids at a gross rate of approximately 1,688 bbls equivalent on an 18/64ths adjustable choke at 2,900 pounds per square inch flowing casing pressure. Caza currently has a 45% working interest (35.213% net revenue interest) before payout and a 58.75% working interest (45.972% net revenue interest) after payout in the Caza Ridge 14 State 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, Azotea Mesa, Bradley 29, Two Mesas and Quail Ridge. The company is well positioned with approximately 3,300 net acres in the play, and management continuesa to monitor opportunities to build on Caza's current acreage position. W. Michael Ford, CEO, said, "This is an exceptionally good result for Caza's first operated horizontal Bone Spring well. We are very pleased with the result and the value created for our shareholders. In addition to creating development opportunities associated with the Copperline property, this result has de-risked a large portion of our Bone Spring acreage in Lea County. Production from the Caza Ridge well should significantly increase Caza's oil to gas production ratio, while adding additional cash flow and reserve value to the company." "Although this is Caza's first operated horizontal Bone Spring well, all three Bone Spring wells that Caza has participated in thus far have been successful. We hope to build on this initial success and are currently drilling the horizontal section of our operated Forehand Ranch test well, which should reach total measured depth shortly. Once a frac date for this well has been scheduled, we will update the market accordingly." Caza acquires, explores, develops and produces oil and gas in the following regions of the United States through its subsidiary, Caza Petroleum, Inc.: Permian Basin (West Texas and Southeast New Mexico) and Texas and Louisiana Gulf Coast (on-shore). n 5 only $59.9 Subscribe today – 2 years $142.40 SAVE 50% up to online at www.resourceworld.com or phone 1.877.484.3800 NAME ADDRESS CITY PHONE E-MAIL Resource World (Print Edition) 1 Year ($39.95) Resource World (Print Edition) 2 Years ($59.95) Resource World (Print and Digital Edition) 1 Year ($49.95) Resource World (Digital Edition) 1 Year ($29.95) 709-700 W Pender St., Vancouver BC V6C 1G8 Canada 70 www.resourceworld.com PROV. POSTAL CODE Resource World (Digital Edition) 2 Years ($49.95) Resource World (Print and Digital Edition) 2 Years ($89.95) Resource World (Print) 1 Years ($104.00) Renew my subscription Canadian subscribers please add applicable sales tax * Resource World does not sell your information to third parties DECEMBER 2012/JANUARY 2013