CRZO Carrizo Oil and Gas Inc

HOUSTON, July 13 /PRNewswire-FirstCall/ -- Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) today provided an operational update on its Barnett Shale, Onshore Gulf Coast, North Sea and Floyd Shale plays. (Logo: http://www.newscom.com/cgi-bin/prnh/20030523/CRZOLOGO ) Carrizo has tested two additional Barnett Shale wells in the prolific "core" area of SE Tarrant Co., Tx. The Barton Hall Cecil #1H and #2H each tested at 4.2 MMCFED. Sales line connections are expected into an Energy Transfer pipeline in late July assuming no further rain delays. Four additional horizontal wells nearby in SE Tarrant Co. have been drilled and should be fracture stimulated in late July. Two additional SE Tarrant wells are currently being drilled. Carrizo has a 100% working interest in all of its SE Tarrant wells. The current drilling plan will utilize two drilling rigs dedicated to SE Tarrant for at least eighteen months with each rig drilling an estimated one horizontal well each month. Carrizo's third rig is splitting its time drilling horizontal wells in Tarrant, Parker and Hood Counties. The Company's fourth drilling rig is drilling horizontal wells in Parker and Hood Counties. The frac and flow test program on the Miller A-14 well (in the "Mega-Mata Prospect") located in Matagorda Co., Tx. is essentially complete. Carrizo attempted a total of four fracture stimulations in the wellbore testing several zones. The first three intervals tested at rates between 0 and 800 MCFD with the final attempt (currently completed interval) testing at rates up to 3,200 MCFD and sustained a flow rate of only 1,500 MCFD with 8,300 psi over an extended test period. The gas stream contains 9% CO2 and 30 ppm H2S on average which would require gas treatment facilities to produce. Profitability of further development and reserve potential are impacted by the nature of the gas stream and the low reservoir permeability and will be evaluated after an additional extended flow period. Carrizo has a 28% working interest and Petrobras has a 72% working interest. In the UK North Sea, the Carrizo-generated Huntington discovery in Block 22-14b, has flow tested at a combined rate of 11,034 BOEPD from the Paleocene Forties sand and the Jurassic Fulmar sand. Carrizo has a 15% working interest in the block; Oilexco is the license operator. The well has been shut-in pending partner meetings to formulate a development plan. No additional drilling is expected before the fourth quarter when drilling slots become available on the drilling rigs that Oilexco has under long-term contracts. Carrizo has two adjoining blocks with working interests of 27.3% and 100%. Carrizo's first horizontal well in the Floyd Shale is being drilled in Clay Co., Miss. The well is currently at 8,274' and 83 degrees from vertical. The well was sidetracked last week after a drilling assembly was lost in the hole and could not be recovered. Current plans are to cement a liner in the hole once the curve is complete, and then drill a 3,000' lateral section. Fracture stimulation of three zones should begin in about eight weeks. Carrizo has a 50% working interest in the well. The Company's estimated net production as of June 30, 2007 was 49 MMCFED with 28 MMCFED from the Barnett Shale and 21 MMCFE (net of an estimated 1.8 MMCFED for the shut-in of the Galloway GU 1 #2) from the Onshore Gulf Coast. The Galloway GU 1 #2, operated by Cimarex, was shut-in on May 6th due to a downhole mechanical failure and is under evaluation for a potential workover or sidetrack to restore production. We expect that the second quarter production will be in the range of 46 to 47 MMCFED as compared to our first quarter 2007 production of 35.6 MMCFED. This production increase from the first quarter 2007 is largely attributable to the new production in (1) the Barnett Shale from the three Campuzano wells, put on line in early May, and (2) the Onshore Gulf Coast from the Baby Ruth #1 and the Doberman #1 wells, put on line in mid-March and early May, respectively. In addition, an estimated 19 MMCFED net to Carrizo has been drilled and is waiting on completion and/or pipeline connection in the Barnett Shale including the previously mentioned SE Tarrant County wells. 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 proven onshore trends along the Texas and Louisiana Gulf Coast regions and the Barnett Shale area in North Texas. Carrizo controls significant prospective acreage blocks and utilizes advanced 3-D seismic techniques to identify potential oil and gas reserves and drilling opportunities. Statements in this news release, including but not limited to those relating to Carrizo's or management's intentions, beliefs, expectations, hopes, projections, assessment of risks, estimations, plans or predictions for the future, including testing, evaluation, potential effects or timing, cash flow, the expected timing of drilling of additional wells, the expected timing of fracture stimulation, amount of shut-in production, well production rates, project economics of the Miller A-14 well, future drilling and completion of current drilling of wells, timing of production, availability and timing of use of drilling rigs and other statements that are not historical facts are forward looking statements that are based on current expectations. Although the Company 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 the results and dependence on exploratory drilling activities, results of testing, evaluation, timing, growth of Huntington, structure size, results of any drilling operations, amount of actual production, final test results, operating risks, risks of foreign operation, risks of offshore operations, oil and gas price levels, land issues, availability of equipment, weather and other risks described in the Company's Form 10-K for the year ended December 31, 2006 and its other filings with the Securities and Exchange Commission. Contact: Carrizo Oil & Gas, Inc. B. Allen Connell, Director of Investor Relations Paul F. Boling, Chief Financial Officer (713) 328-1000 http://www.newscom.com/cgi-bin/prnh/20030523/CRZOLOGO http://photoarchive.ap.org/ DATASOURCE: Carrizo Oil & Gas, Inc. CONTACT: B. Allen Connell, Director of Investor Relations, or Paul F. Boling, Chief Financial Officer, both of Carrizo Oil & Gas, Inc., +1-713-328-1000

Copyright