Caza Oil & Gas Announces Share Consolidation

HOUSTON, TEXAS--(Marketwired - May 11, 2016) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX:CAZ) announces that, further to the announcements of April 4, 2016 and May 2, 2016, the Company has completed the consolidation (the "Consolidation") of its common shares on the basis of one post-consolidation common share for 560,000,000 pre-consolidation common shares (the "Pre-Consolidation Shares", which term shall include all depositary interests in respect of such Pre-Consolidation Shares).

As a result of the Consolidation, all Pre-Consolidation Shares, other than those held of record by Talara Opportunities V, LP, became fractional shares which were acquired by the Company by being rounded down and cancelled. In consideration therefor, the former holders of Pre-Consolidation Shares are entitled to receive payment in the amount of US$0.00481 (less applicable withholdings, if any) for each Pre-Consolidation Share held. Talara Opportunities V, LP is now the sole registered shareholder of the Company, with a beneficial interest therein of approximately 98.13% and the balance (approximately 1.87%) being owned by members of Caza management.

In order to receive payment of the cash amount that is payable under the Consolidation, former registered shareholders must surrender to the Company's depositary, Computershare Investor Services Inc. ("Computershare"), the original certificate or certificates representing their interest in the Pre-Consolidation Shares, together with a duly completed and signed letter of transmittal and any other required documents.

A form of letter of transmittal was sent to registered shareholders together with the information circular of the Company dated April 1, 2016. The letter of transmittal is also available under the Company's issuer profile at www.sedar.com, from the Company's website or from Computershare upon request. The letter of transmittal sets out the procedures for delivering share certificates and making payment in the amounts to which delivering shareholders are entitled, and describes any other documentary and procedural requirements.

Shareholders who held their Pre-Consolidation Shares in brokerage or other electronic accounts should not be required to take any action to surrender the certificates for their Pre-Consolidation Shares or to receive payment, as such action should be taken by the broker or other nominee through which their Pre-Consolidation Shares were held.

The cancellation (the "Cancellation") of the admission to trading of the common shares on the AIM market of the London Stock Exchange plc ("AIM") became effective at 7:00 a.m. (GMT) on May 10, 2016, with trading of the common shares on AIM having ceased effective at the close of business on May 9, 2016. Shareholders may no longer buy and sell common shares of the Company on AIM and the Company is no longer required to comply with the AIM Rules.

Caza will voluntarily delist its common shares from the Toronto Stock Exchange and apply to terminate its reporting obligations as a reporting issuer under Canadian securities laws as soon as possible.

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.: Permian Basin (West Texas and Southeast New Mexico) and Texas and Louisiana Gulf Coast (on-shore).

The TSX has neither approved nor disapproved the information contained herein.

ADVISORY STATEMENT

Information in this news release that is not current or historical 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", "hope", "project", "predict", "potential", "intend", "could", "might", "should", "believe", "develop", "test", "anticipate", "enhance" and similar expressions. In particular, statements regarding the surrender of and payment for common shares, the delisting of Caza's common shares from the Toronto Stock Exchange and the termination of Caza's obligations as a reporting issuer constitute forward-looking information.

Such forward-looking information is subject to certain risks, assumptions and uncertainties, including risks, including regulatory and procedural uncertainties associated with the foregoing. 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.