Caza Oil & Gas Announces Farmin and Provides Operational Update - Seite 2

Broadcaster Property, Lea County, New Mexico: As previously announced, the Broadcaster 29 Fed #3H horizontal 3^rd Bone Spring well (the "29-3H well") produced at a 24 hour gross rate of 2,621 barrels (bbls) of oil equivalent, which is comprised of 2,062 bbls of oil and 3.36 million cubic feet of natural gas, on September 16, 2014. The gross 24 hour peak rate occurred on September 17, 2014, and was 2,830 bbls of oil equivalent, which is comprised of 2,345 bbls of oil and 2.91 million cubic feet of natural gas. The well was producing on a 46/64ths adjustable choke at 1,520 pounds per square inch flowing casing pressure. The well has since produced at a 25 day average gross rate of 1,696 bbls of oil equivalent, which is comprised of 1,364 bbls of oil and 1.99 million cubic feet of natural gas. This remains a very strong well. Caza currently has a 25% working interest (approximate 17.63% net revenue interest) in the 29-3H well and the Broadcaster Property.

The Broadcaster Property is a 320 acre tract adjacent to the Company's West Copperline Property, which also comprises 320 acres. In addition to the producing 3^rd Bone Spring pay interval, log data from the 29-3H well indicates the presence of oil and natural gas across the same potential pay intervals present at West Copperline, which include: the Brushy Canyon, Avalon Shale and 1^st and 2^nd Bone Spring Sand intervals. This is favorable for future development across the Broadcaster Property. Management believes the deeper Wolfcamp formation on the property is also prospective for oil and natural gas.

Lennox Property, Lea County, New Mexico: The Lennox 32 State Unit #4H horizontal Bone Spring well (the "32-4H well") reached the intended total measured depth of approximately 15,545 feet on September 18, 2014. Due to unusually high levels of rainfall across New Mexico, all field operations in the area are running behind schedule. Therefore, the originally scheduled fracture stimulation date of October 6, 2014, has been rescheduled for October 16, 2014. Caza currently has a 50.00% working interest (approximate 38.98% net revenue interest) in the 32-4H well and the Lennox Property.

Marathon Road/Lynch Property, Lea County, New Mexico: The operator commenced operations on the Marathon Road 15 OB Fed #1H horizontal Bone Spring well on October 6, 2014. The well is currently drilling ahead at approximately 2,000 feet vertical depth. This well is a direct offset to the very successful Marathon Road 15 PA Fed #1H horizontal Bone Spring well, which had an initial 30 day average of 1,974 Boe/d gross, consisting of 1,721 bbls of oil and 1.52 MMcf of natural gas. Caza currently has a 14.7% working interest (approximate 12.5% net revenue interest) in these wells and the Marathon Road Property.