SOURCE: Carrizo Oil & Gas, Inc.

Carrizo Oil & Gas, Inc.

September 29, 2010 06:30 ET

Carrizo Oil & Gas, Inc. Provides Operations Update, Announces Investment Conference Presentation

HOUSTON, TX--(Marketwire - September 29, 2010) - Carrizo Oil & Gas, Inc. (NASDAQ: CRZO) today provided an operations update. During the third quarter, the company drilled and cased three Eagle Ford Shale horizontal wells and is currently drilling the horizontal leg in a fourth. Following the completion of drilling and casing activities on this well, the drilling rig will be moved to a location in close proximity to the El Paso Hixon #1 to spud a fifth well. The first three wells are being prepared for hydraulic fracture stimulation, which is expected to begin in the third week of October. The fourth and fifth wells are expected to be stimulated and completed in succession following the completion of the first three. These Eagle Ford wells are all located in the condensate window in central La Salle County, Texas.

In the Niobrara, a well pad has been prepared on Carrizo's leasehold in northern Weld County, Colorado, a rig has been contracted, and the company's first Niobrara horizontal well is expected to spud in the first or second week of October. This well will be fractured and completed following drilling. The company expects to conduct a production test during the fourth quarter of this year. The company has committed to participate in a 300 square mile 3-D seismic acquisition program over its Niobrara acreage in conjunction with industry partners.

In the Marcellus Shale, the company has contracted a Nabors Drilling rig to initiate development drilling in northern Pennsylvania. The rig is expected to commence drilling on a multi-well pad located in Forest Lake Township, Susquehanna County, PA in late October 2010.

In the Barnett Shale, all 22 wells on the drilling pad located on the campus at the University of Texas at Arlington are on full production. The pad is flowing at a rate of 62 mmcfe/day now that pipeline constrictions have been resolved and the final wells completed. The production from the new wells and the increase in capacity has allowed the company's current Barnett net production to rise to approximately 112 mmcfe/day.

CEO S.P. "Chip" Johnson commented, "Our initial drilling activities in the Eagle Ford have gone very smoothly, on time and on budget. These results have given us the confidence to add a fifth well to our 2010 plan. We look forward to announcing test flow results from the first of these wells in November, possibly in conjunction with our third quarter earnings release. We are pleased with the pace the company's transformation into a more balanced oil producer is moving; both our Eagle Ford and Niobrara projects should make strong contributions to our goal."

Carrizo will make a presentation at the Johnson Rice Energy Conference on Wednesday, October 6, 2010 at 10:15 AM in New Orleans.

A webcast of the presentation can be accessed at http://www.wsw.com/webcast/jr11/crzo/, or by visiting the company website at http://www.crzo.net/, clicking in "Investor Relations" and then on "Johnson Rice 2010 Presentation." The presentation will be webcast live beginning at 10:15 AM CDT on Wednesday, October 6. The presentation slide book will be available on the Carrizo website coincident with the conference presentation.

About the Company
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, new production, drilling, 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 industry partners, market and other conditions, capital needs and uses, commodity price changes, effects of the global financial crisis on exploration activity, 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