Aztec Announces Brown County Production Increases

Aztec Announces Brown County Production
Increases

HOUSTON, TX November 8, 2012 -- Aztec Oil & Gas, Inc. (Pink Sheets: AZGS – News)
announced that Aztec gained control over operations of the Guthrie Ranch field
in Brown County, Texas, effectively in early 2012. After that, there was a period of time needed
to inventory, clean up the former operator’s (Ziegler Peru Inc.) presence, and
implement the typical standard operations in the field to which Aztec is
accustomed.

There
also had to be electrical service and vendor transfers occur in conjunction
with the lawsuit filed against ZPI and its principal on January 5, 2012.

Once
the change over was accomplished, Aztec began focusing on the field operation
and production. The result of Aztec’s
production improvement program for the Aztec Brown County wells is beginning to
show.

For
the 14 months that ZPI operated the field, monthly reporting of oil production
averaged 286 barrels. After the start up
period for Aztec, we are reporting approximately 436 BO per month average over
the last few months, with approximately 828 BO produced for October 2012.

“In
spite of a difficult beginning with the Brown County field, and Aztec having to
remove the former operator (ZPI), we are encouraged with our progress,” stated
Waylan R. Johnson, President of Aztec Oil & Gas, Inc. He further stated, “We are currently in the
field completing additional wells and adding production weekly.”

About Aztec
Oil & Gas, Inc.

Aztec is
an experienced oil and gas exploration, development and production company
focusing on Texas, plus other areas of the U.S.
Its interests are highly diversified between development drilling and
exploration drilling; however, when it offers drilling/production partnerships,
Aztec focuses primarily on Texas
shallow, lower risk, development and step out oil wells. When offered, those
programs/partnerships are placed, with accredited investor partners, only
through FINRA registered Broker Dealers, and Registered Investment Advisors;
and, are focused primarily on oil, with natural gas normally being the
secondary target of production.

Aztec has
been in the oil/gas business since 2004, and entered the sponsored drilling
program industry in 2006. Over the next
two and one half years, beginning in late 2006, Aztec
intentionally restricted itself to only three small, very limited Appalachian,
natural gas drilling partnerships. Such was done in order to study and become
fully familiar with the nuances of the sponsored drilling program industry
before expanding to the Company's full capabilities. In the summer of 2008, Aztec
fortuitously and publicly announced it was discontinuing any natural gas
drilling in Appalachia, and was ready to substantially expand its sponsored
drilling program activities, along with its other activities, primarily for oil
in Texas.

As
to only its sponsored drilling partnerships, when offered; since 2008, Aztec has, indeed, focused almost all of those
partnerships on oil wells in Texas. In
addition to its early, initial three small Appalachian natural gas drilling
partnerships mentioned above; Aztec
has, intermittently, sponsored and closed a significant number of other
drilling/production partnerships (all of the latter, as stated, focused
primarily on drilling for oil in Texas).
Aztec Energy LLC, a
wholly-owned subsidiary of Aztec Oil
& Gas Inc., is the Managing General Partner of all Aztec
drilling partnerships; and another wholly-owned Aztec
Oil & Gas Inc. subsidiary, Aztec
Drilling & Operating, LLC, is the drilling contractor and contractual well
operator for such partnerships. Through
its own participation, contributions and coverage, Aztec
owns a 30% interest in all of its drilling/production partnerships. In general clarification of its activities,
in addition to its own direct corporate participations in industry partner
wells, Aztec sometimes sponsors
lower risk, development drilling/rework/production programs which include
significant tax benefits; all of which are offered only through FINRA
Registered Broker Dealers and Registered Investment Advisors to Accredited
Investors. Aztec’s
sponsored drilling/rework/production programs, when offered, focus primarily on
shallow oil/gas drilling, are considered unique, and also incorporate a
sophisticated exit strategy for investors.

Please feel free to visit Aztec on the web at www.AztecOG.com. An option is provided on the website to join
the Aztec (corporate) mailing list and receive up to date information on
general Aztec activities, including all Aztec press releases.

This
release/announcement/document is neither an advertisement, an offer to sell,
nor a solicitation of an offer to buy securities, Units or participations of Aztec Oil & Gas Inc., its subsidiaries or
affiliates (collectively “Aztec”).
This release/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 release/announcement/document, a
Memorandum, or the Aztec website,
including, but not limited to, statements regarding future performance of
events, are forward-looking statements. All such forward-looking statements are
based on various underlying assumptions, estimates and expectations and are
subject to risks and uncertainties which could cause actual events to differ
materially from those expressed in such statements. As a result, there can be
no assurance that the forward-looking statements included in this release/
announcement/document, a 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 release/announcement/document, a
Memorandum, or the Aztec Website
might not occur. Accordingly, investors should not rely upon forward-looking
statements or historical performance as a prediction or indicator of actual or
future results. Also, Aztec Oil
& Gas, Inc., its officers, principals, employees, agents, subsidiaries,
affiliates and consultants, and the other parties, investors, shareholders,
partnerships and partners, involved in any properties, programs, partnerships
and Aztec ownership or activities,
have various, material conflicts of interests. The price(s) received for the
oil and natural gas produced from any investments, activities or properties may
be less, or more, than quoted NYMEX prices at any given times. Specific
results, yields, benefits, etc. are not guaranteed by Aztec
and are subject to risks and limitations inherent in the energy industry and/or
described in any Memorandum and elsewhere. Aztec
does not undertake any obligation to update any forward-looking statements,
facts or other information, whether as a result of new information, future events,
subsequent circumstances or otherwise.