HOUSTON, TEXAS--(Marketwire - Aug. 4, 2008) - Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX:CAZ)(AIM:CAZA) is pleased to announce that the second well of a four well programme, the Glass Ranch B #1 in Upton County, Texas, has successfully encountered hydrocarbons. The well, operated by Momentum Energy Corporation of Midland Texas, reached a total depth of 10,404 feet on July 28, 2008. Electric logs indicated multiple potential pay sands in the Wolfcamp and Spraberry formations. Completion operations have commenced and a fracture stimulation is planned for the near future. Following the success, the rig is being moved to an offsetting location to spud the Glass Ranch B #3 well.

Caza currently has a 50.0% working interest and a corresponding 38.54% net revenue interest before payout of the well, which will change after payout to an estimated 47.41% working interest and an estimated 35.78% net revenue interest.

Operational Update:

Since the Company's shares were admitted to trading on AIM and TSX in December 2007, Caza has drilled seven wells of which six encountered hydrocarbons. Four of the wells are in production while two are in the process of completion for production. A further ten wells are anticipated to be drilled before the end of 2008. The wells drilled and to be drilled are a mixture of exploration and offset development wells.

The Jonell Cerny well, as previously announced on May 9, 2008, experienced mechanical difficulties which prevented completion at that time. The well was however completed at an upper level in the Yegua formation and has been producing oil and gas in limited quantities.