Operational Update

July 28, 2010

Caza Oil & Gas, Inc. ("Caza" or the "Company")

Bongo Prospect/O.B. Ranch #1 Well Update

Houston, Texas (July 28, 2010) - Caza (CAZA AIM SYMBOL/CAZ TORONTO SYMBOL) is pleased to announce that the Bongo, O.B. Ranch #1 Well has reached a depth of 12,964 feet, and intermediate casing has been installed, cemented and formation integrity tested. Drilling has recommenced to the target depth of 16,000 feet, which should take approximately fifteen days. Preliminary drilling and log data indicate hydrocarbon bearing sands in a shallower horizon that will require further evaluation.

W. Michael Ford, Chief Executive Officer commented:

"We are pleased that drilling on the O.B. Ranch #1 well is progressing as planned and anticipate reaching the target depth within approximately fifteen days."

About Caza

Caza is engaged in the acquisition, exploration, development and production of hydrocarbons in the Texas Gulf Coast (on-shore), south Louisiana, southeast New Mexico and the Permian Basin of West Texas regions of the United States of America through its subsidiary, Caza Petroleum, Inc.

For further information please contact:

www.cazapetro.com

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

In accordance with AIM Rules - Guidance Note for Mining, Oil and Gas Companies, the information contained in this announcement has been reviewed and approved by Anthony B. Sam, Vice President Operations of Caza who is a Petroleum Engineer and a member of The Society of Petroleum Engineers.

ADVISORY REGARDING FORWARD LOOKING STATEMENTS

Information in this news release that is not current or historically factual information may constitute forward-looking information within the meaning of securities laws. Such information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "schedule", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", and similar expressions. Information regarding the operations to be conducted on the Bongo Prospect or O.B. Ranch #1 well contained in this news release constitutes forward-looking information within the meaning of securities laws.

Implicit in this information are assumptions regarding: the timing of drilling operations, projected revenue and expenses and well performance. Specifically, the Company has assumed that these prospects and/or activities will produce positive drilling results. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual future operating results and economic performance of the Company are subject to a number of risks and uncertainties, including general economic, market and business conditions and could differ materially from what is currently expected as set out above.

For more exhaustive information on these risks and uncertainties you should refer to the Company's most recently filed annual information form which is available at www.sedar.com. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time except as may be required by securities laws.