Operational Update

November 24, 2011

Caza Oil & Gas, Inc.

CAZA OIL & GAS PROVIDES OPERATIONAL UPDATE

Hite Offset Property, McMillan #1 Well

HOUSTON, TEXAS (Marketwire - November 24, 2011) - Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX:CAZ) (AIM:CAZA), the U.S. focused exploration, appraisal, development and production company, is pleased to provide an operational update on the Caza McMillan #1 well in Wharton County, Texas.

Re-entry operations on the Caza McMillan #1 well to test the Yegua 9,650 sand have been successful. The well was perforated at intervals between 9,692-9,704 feet and 9,714-9,716 feet, then fracture stimulated, resulting in gross, initial production rates of 1.375 million cubic feet of natural gas, 57 barrels of oil and 29 barrels of water per day on a 16/64ths inch choke on November 20, 2011. The well is still recovering frac fluid and is expected to be online at the sales point within the next ten days.

Caza currently has a 42.53% working interest and a 31.05% net revenue interest in the Caza McMillan #1 well.

W. Michael Ford, Chief Executive Officer commented:

"We are pleased with the results of the Caza McMillan #1 operation. This new well is producing at expected levels and will quickly add to our current cash flow and production levels. We look forward to continuing this trend through the development of our currently producing assets and the continued drilling of our diverse project inventory beginning in the near future."

About Caza

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

For further information, please contact:

Caza Oil & Gas, Inc.

Michael Ford, CEO +1 432 682 7424

John McGoldrick, Chairman +1 832 573 1914/+44 7796 861 892

Cenkos Securities plc

Jon Fitzpatrick +44 20 7397 8900 (London)

Beth McKiernan +44 131 220 6939 (Edinburgh)

M: Communications

Patrick d'Ancona +44 20 7920 2330 (London)

Chris McMahon

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 STATEMENT

Information in this news release that is not current or historical factual information may constitute forward-looking statements within the meaning of securities laws. Such information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "strongly", and similar expressions. Information regarding future operations and results relating to the Caza McMillan #1 well, the Yegua formation, reserves and revenue increases and the costs and risks associated therewith, and other information relating to future production activities or operations contained in this news release constitutes forward-looking information within the meaning of securities laws.

Implicit in this information are assumptions regarding: the technical and commercial viability of the Caza McMillan #1 well, the timing and results of production operations, projected revenue and expenses and well performance. Specifically, the Company has assumed that the well and/or activities will produce positive results. These assumptions, although considered reasonable by the Company, may prove to be incorrect. Readers are cautioned that actual future operations, 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. In addition, the geotechnical analysis and engineering to be conducted in respect of the well is not complete. Future flow rates from the well may vary, perhaps materially, and the well may prove to be technically or economically unviable. Any future flow rates will be subject to the risks and uncertainties set out herein.

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 and the Company's website at www.cazapetro.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.