Aztec Oil & Gas Announces its Third Successful Natural Gas Well in its VIII A Drilling Partnership

HOUSTON, May 4, 2009 (GlobeNewswire via COMTEX) -- AZGS | Quote | Chart | News | PowerRating -- Aztec Oil & Gas, Inc. (Pink Sheets:AZGS) announced another successful gas well in its newest drilling partnership, the Aztec VIII A Oil & Gas LP. As with the previous two successful wells, this gas well is also located in Goliad County, Texas.

The newest well, the West Powell #3, was drilled to a total depth of approximately 1,695 feet. The well encountered two Miocene gas sands: one at 1,662 feet (lower zone); and the other at 1,535 feet (upper zone). The lower zone has seven feet of net gas sand and the upper zone has fifteen feet of net gas sand. The upper zone was the target zone, but the lower zone will be produced first and the upper zone will be completed and produced after the lower zone is fully production depleted.

Currently the lower zone of this well is estimated to be produced at a flow rate between approximately 100,000 - 300,000 cfgpd (cubic feet gas per day) into sales pipeline. Estimated reserves in this zone, utilizing the log, flow test and 3D seismic should be between approximately 100,000,000 cfg (cubic feet gas) and 150,000,000 cfg, or 1/10th to 1.5/10ths bcf (billion cubic feet) of natural gas. As stated, this was not the target zone for this well and this zone will be produced at an accelerated rate to depletion at which time the upper zone will be completed.

Using the same foregoing analytical criteria, estimated reserves for the upper zone should be approximately 400,000,000 cfg (cubic feet gas) to 700,000,000 cfg or 4/10ths to 7/10ths bcf (billion cubic feet) of natural gas. The production rate for this upper zone is estimated to be approximately 200,000 - 400,000 cfgpd (cubic feet gas per day). As with all wells, to truly calculate reserves, the zones will need to be produced for several months.

Aztec Oil & Gas, Inc. and Resaca Resources (Operator for Aztec) have identified and spudded one (1) additional well location that is a direct analog to these three previous wells. This fourth well is being drilled and completed immediately.

"We are very pleased with the results of these first three wells for the Aztec VIII A Partnership. While Aztec is presently inclined to focus on drilling oil wells for its partnerships, all potential wells are evaluated on a stringent economic, rather than emotional scale. If the economics favor a partnership we will drill for gas, as we did in this instance. Aztec's focus always remains on making the most money for its shareholders and investor partnerships in every situation," stated Waylan R. Johnson, President of Aztec Oil & Gas, Inc.

About Aztec Oil & Gas, Inc.

Aztec is an oil and gas exploration, development and production company focusing on numerous areas throughout the U.S. It owns a minority interest in a 29-well oil and natural gas program in Pennsylvania. Aztec also owns a minority interest in two producing Deep Lake wells in Cameron Parish, Louisiana ranging from 13,600 feet to 14,300 feet in depth. Aztec additionally owns a minority interest in one Wharton County, Texas producer; and one Barnett Shale play area well located in Wise County, Texas which had good initial oil and gas shows, is producing, but is experiencing mechanical difficulties. Aztec has a minority interest in three producing gas wells in Oklahoma of which two are conventional wells, and the third is a horizontal, Coal Bed Methane (CBM) well.

In 2007, through its wholly-owned subsidiaries, Aztec Energy, LLC and Aztec Drilling & Operating, LLC, Aztec completed and now manages a successful four (4) well drilling program in the Doddridge County area of West Virginia in which it owns a 30% interest. Aztec Energy, LLC also manages a second Aztec drilling partnership focused in Tyler County, West Virginia in which it owns a 30% interest. In 2008 Aztec's third drilling partnership subsequently successfully completed two wells in Tyler County, WV. Aztec also manages this third partnership and owns a 30% interest in same. The fourth drilling partnership, referenced in this press release, focuses on drilling in Texas. Aztec also owns a 30% interest in that partnership and acts as its managing partner. In general clarification of its activities, Aztec sponsors low risk, development drilling programs which include significant tax benefits, all of which are sold through FINRA Registered Broker Dealers to Accredited Investors. Aztec's drilling programs are very unique and also incorporate a sophisticated exit strategy for investors.

For more information on Aztec Oil & Gas, Inc., please visit http://www.aztecoil-gas.com.

This presentation/document contains certain statements, estimates and forecasts with respect to future performance and events. All statements other than statements of historical fact included in this presentation/document, any Aztec Memorandum, or the Aztec Website, including statements regarding future performance of events, are forward-looking statements. All such forward-looking statements are based on various underlying assumptions and expectations and are subject to risks and uncertainties which could cause actual events to differ materially from those expressed in the forward-looking statements. As a result, there can be no assurance that the forward-looking statements included in this presentation, any Aztec Memorandum, or the Aztec Website will prove to be accurate or correct. In light of these risks, uncertainties and assumptions, the future performance or events described in the forward-looking statements in this presentation/document, any Aztec Memorandum, or the Aztec Website might not occur. Accordingly, investors should not rely upon forward-looking statements as a prediction of actual results. Also, the price Aztec Oil & Gas, Inc., its managed partners and the other parties involved in any properties receive for the oil and natural gas produced on their properties may be less than quoted NYMEX prices at any given time. The Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events, subsequent circumstances or otherwise.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Aztec Oil & Gas, Inc.

Phoenix IR Associates, Inc.
         Tony Drake
         281-579-1602
         investor@aztecoil-gas.com

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