Mr. John McGoldrick reports

CAZA OIL & GAS ANNOUNCES RESULTS OF SECOND WELL AT GRAMMA RIDGE

Caza Oil & Gas Inc. has released another good result at Gramma Ridge and has provided a drilling update at Lennox. Both properties are operated by the company.

Gramma Ridge property, Lea county, New Mexico

The Gramma Ridge 27 State No. 2H horizontal Bone Spring test well reached the intended total measured depth of approximately 14,650 feet in the targeted second Bone Spring sand interval and was subsequently fracture stimulated in 24 stages beginning on Aug. 4, 2014. Under controlled flowback the producing rates have steadily increased, and the well produced at a 24-hour gross rate of 870 barrels of oil equivalent, comprising 679 barrels of oil and 1.15 million cubic feet of natural gas, on Aug. 24, 2014. The well was producing on a 42-64ths adjustable choke at 370 pounds per square inch of flowing tubing pressure. Facilities are already in place on the property, and both oil and natural gas will be flowing to sales in short order.

In addition to proving up the second Bone Spring sand interval, log data were obtained across the Brushy Canyon, Avalon and first Bone Spring sand intervals in the 27-2H well. The data indicate the presence of oil and natural gas across each of these intervals, which is favourable for future development on this 320-acre lease. The third Bone Spring sand is already proven and producing on the property from the Gramma Ridge 27 State No. 1H directly offsetting the 27-2H well. Management believes the deeper Wolfcamp formation on the property is also prospective for oil and natural gas.

Caza currently has a 52.5-per-cent working interest (approximate 40.82-per-cent net revenue interest) in the Gramma Ridge 27-2H well and the property.

Lennox property, Lea county, New Mexico

The rig from the Gramma Ridge property was moved to the Lennox property. The company commenced drilling operations on the Lennox 32 State Unit No. 4H horizontal Bone Spring well on Aug. 17, 2014. The 32-4H well is currently drilling ahead at approximately 5,760 feet to an intended total vertical depth of 11,300 feet before drilling the lateral section, which is intended to reach a total measured depth of 15,740 feet.

Caza has a 50.00-per-cent working interest (approximate 38.98-per-cent net revenue interest) in the 32-4H well and the Lennox property.

W. Michael Ford, chief executive officer, commented: "We are extremely pleased with this result at Gramma Ridge. The initial third Bone Spring test well on the property was a step out from our recent successes in the play, so proving up the second Bone Spring interval with the offset 27-2H test well is an excellent result that again demonstrates the significant upside to be realized from stacked pay intervals in the play. This result will have a positive effect on both reserves and drilling locations on the property.

"We are also happy to be drilling ahead on the Lennox 32-4H well and look forward to updating the market once this well has been drilled and completed."

We seek Safe Harbor.