Drilling Commenced at Tx. Windham Prospect

Caza O&G announced that development drilling has commenced on the Windham prospect in Upton County, Texas. The operator commenced the drilling of the Caza 158 #2 well on January 23, 2011.

The 158 #2 is designed to drill to a total depth of approximately 11,100 feet to test the Spraberry, Wolfcamp, Penn and Atoka formations and should take approximately 35 days to drill. The prospect covers approximately 1,318 net acres and should initially be developed on 80 acre spacing.

As previously announced, the Caza 158 #1 and Caza 162 #1 wells encountered multiple pay zones, and both wells are currently in the completion phase, which requires multiple fracture stimulations.

Caza currently has a 25.0% working interest and a corresponding 18.75% net revenue interest in all three wells.

W. Michael Ford, Caza's Chief Executive Officer commented, "We are pleased to announce the commencement of development operations on the Windham prospect. The ongoing completion operations on the first two wells are encouraging, and we look forward to the continued development of this project."

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