SOURCE: Carrizo Oil & Gas, Inc.

Carrizo Oil & Gas, Inc.

November 30, 2010 06:30 ET

Carrizo Oil & Gas Announces Initial Production Rates for Its First Two Eagle Ford Shale Wells and Updates Niobrara Activity

HOUSTON, TX--(Marketwire - November 30, 2010) - Carrizo Oil & Gas, Inc. (NASDAQ: CRZO) today is providing an operational update on the Company's activities in the Eagle Ford Shale and Niobrara Formation. Carrizo's initial two Eagle Ford Shale wells were drilled from a common surface location in central La Salle County, Texas. The Mumme Ranch 10H was drilled with a 5,493 foot horizontal leg and was completed with 15 frac stages. The Mumme Ranch 12H was drilled with a 5,455 foot horizontal leg and was completed with 19 frac stages. Following the flow-back of completion fluids, the two wells were tested for production potential beginning on November 20, 2010. The Mumme 10H had a 24-hour initial production rate of 1,011 barrels of oil per day ("Bopd") while the Mumme 12H had a 24-hour initial production rate of 1,220 Bopd. Production from this two-well pad appears to have stabilized at the current combined rate of approximately 1,125 barrels of oil per day. Approximately 2 million cubic feet per day of 1,367 btu per mcf natural gas is currently being flared pending connection to a gas gathering pipeline. Carrizo has a 100% working interest and a 75% net revenue interest in these two wells.

Hydraulic fracture stimulation activities have been completed on the Company's next Eagle Ford well, the Pierce 10H, located to the southwest of the Mumme wells, and the well has commenced flow-back today. It is currently anticipated that initial production results for this well should be available before the end of the year. Carrizo owns approximately 20,000 net acres in the Eagle Ford Shale play, the majority of which are located in the condensate window of La Salle, Dimmit, and McMullen Counties. In addition to the three wells mentioned in this announcement, Carrizo has drilled two other Eagle Ford horizontal wells in La Salle County which are currently waiting on completion, expected to begin in the first quarter of 2011.

On the Company's Niobrara Formation acreage located in Weld County, Colorado, fracture stimulation activities are scheduled to commence on the State 16-11-9-60H on December 1, 2010. Initial production results are expected to be available from this well before the end of this year. The drilling of the vertical portion of the Company's second Niobrara well, the Bob White 36-44-8-62H, has been completed and protective casing has been installed through the curve. The drilling of the horizontal leg is currently under way. Initial production results from this well are expected in January 2011. A third Niobrara well is planned to be drilled in Section 36, Township 9N, Range 61W of Weld County immediately following finalization of the drilling of the Bob White well. Carrizo owns approximately 59,000 net acres in the Niobrara play, all of which are located in Weld County.

Carrizo Oil & Gas, Inc. is a Houston-based energy company actively engaged in the exploration, development, exploitation and production of oil and natural gas primarily in the Barnett Shale in North Texas, the Marcellus Shale in Appalachia, the Niobrara Formation in Colorado, the Eagle Ford Shale in South Texas, and in proven onshore trends along the Texas and Louisiana Gulf Coast regions. Carrizo controls significant prospective acreage blocks and utilizes advanced 3-D seismic techniques to identify potential oil and gas reserves and drilling opportunities. Carrizo also controls large acreage positions in other productive shale resource plays.

Statements in this news release that are not historical facts, including but not limited to those related to production rates, new production, production mix, production potential drilling, fracturing, stimulation, completion, seismic activities, future locations, performance of drilling rigs, future development plans, and future announcements and timing, are forward-looking statements that are based on current expectations. Although Carrizo believes that its expectations are based on reasonable assumptions, it can give no assurance that these expectations will prove correct. Important factors that could cause actual results to differ materially from those in the forward-looking statements include results of wells and production testing, performance of rig operators, actions by joint venture partners, industry partners and lenders, market and other conditions, availability of well connects, capital needs and uses, commodity price changes, results of and dependence on exploratory drilling activities, operating risks, land issues, weather, and other risks described in Carrizo's Form 10-K for the year ended December 31, 2009 and its other filings with the Securities and Exchange Commission.

Contact Information

  • Contact:
    Carrizo Oil & Gas, Inc.
    Richard Hunter
    Vice President of Investor Relations
    Paul F. Boling
    Chief Financial Officer
    (713) 328-1000