SOURCE: Carrizo Oil & Gas, Inc.

Carrizo Oil & Gas, Inc.

January 05, 2011 06:30 ET

Carrizo Oil & Gas Releases Operations Update

HOUSTON, TX--(Marketwire - January 5, 2011) - Carrizo Oil & Gas, Inc. (NASDAQ: CRZO) today in anticipation of an investor presentation to be delivered in San Francisco is providing the following update on selected Company operations.

In the Niobrara Formation in Weld and Morgan Counties, Colorado:

  • Carrizo's first Niobrara well, the State 16-11-9-60, was production tested over December 26 and 27 at controlled rates of over 690 barrels of oil per day (552 BOPD net)

  • The State 16-11-9-60 is currently producing at a stable gross rate of approximately 530 BOPD

  • The next Niobrara well scheduled for hydraulic fracture stimulation, the Bob White 36-44-8-62, is expected to begin frac'ing on January 12th

  • Carrizo currently owns approximately 61,000 net acres in the DJ Basin Niobrara Formation oil play

In the Eagle Ford Shale in La Salle County, Texas:

  • Connection to gas gathering for Carrizo's three previously announced Eagle Ford oil wells has been delayed by right-of-way issues; the wells are expected to be connected and commence selling associated gas before the end of January

  • Frac'ing and completion activities are expected to begin on the Company's fourth Eagle Ford well, the Mumme 20H, before the end of the week

Carrizo production exit rate:

  • Carrizo estimates its net production exit rate for the year 2010 was 130,000 thousand cubic feet of natural gas equivalents per day

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 drilling and completion technology along with sophisticated 3-D seismic techniques to identify potential oil and gas drilling opportunities and to optimize reserve recovery.

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, future development plans, connections, sales, exit rates, 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 and gathering systems, 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, right-of-way and other land issues, evaluation of the Company by financing sources, results of financial accounting, 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