2010-06-21-2010-05-20-2010-05-20

JV to earn 75% WI in 1,318 Permian Basin acres in Crane, Upton counties, TX.

Houston-based E&P company Caza Oil & Gas Inc. (Toronto: CAZ) and Devon Energy Production Co. LP, a subsidiary of Devon Energy Corp., Oklahoma City, (NYSE: DVN), have signed an exploration agreement naming Devon as operator to jointly develop a prospect targeting the Wolfberry trend in the West Texas Permian Basin.

Windham Wolfberry spans approximately 1,318 net acres in Crane and Upton counties. Devon has the option to earn 75% of Caza's 100% stake in the prospect. After its completion, Devon earns the right to participate for a 75% interest in all associated operations on the property, with Caza retaining 25%.

Caza chief executive W. Michael Ford says, "This alliance fits with our strategy to reduce single project exposure through farm-out arrangements and to increase the number of projects drilled. If successful, the Windham Wolfberry prospect will open up numerous development locations for oil."

The joint venture is expected to drill the prospect during the first quarter of 2010.

Caza acquires, explores and produces oil and gas properties in the Texas Gulf Coast, southern Louisiana, southeastern New Mexico and the West Texas Permian Basin.