Carrizo Oil & Gas, Inc. Announces First Quarter 2001 Operating Results; Matagorda Well Boosts Daily Production Rate to Record Level

Apr 30, 2001, 01:00 ET from Carrizo Oil & Gas, Inc.

    HOUSTON, April 30 /PRNewswire/ -- Carrizo Oil & Gas, Inc. (Nasdaq: CRZO)
 today announced the operating results for the first quarter of 2001.  During
 the quarter, the Company participated in the drilling of three gross wells,
 all of which were successful, resulting in a 100 percent apparent success
 rate.  Since the end of the quarter, drilling operations were completed on
 three additional wells, two of which were successful.  Drilling operations are
 presently underway on four additional wells, all targeting prospects below
 11,000 feet.
     Operating highlights during the first quarter of 2001 included the
 following:
 
     -- As previously announced, the "Pitchfork Ranch A-90 Well #1" (Zag
        Prospect) in Matagorda County, Texas, reached total depth on March 24,
        2001 and logged approximately 33 feet of net pay in the Discorbis
        sands.  The well tested at a gross rate of 10,499 Mcf of natural gas
        and 1,530 barrels of condensate, i.e. 19,679 Mcfe per day, on a
        12/64 inch choke with 6,100 pounds per square inch flowing tubing
        pressure.  Carrizo is the operator and owns a 56.2 percent working
        interest.  The well commenced production on April 27, 2001 and is
        expected to produce at a stabilized rate of 14,000 Mcfe per day.
     -- The "S. Neblett #3" Vicksburg well in Starr County, Texas, reached
        total depth on February 13, 2001 and logged approximately 180 feet of
        net pay.  Carrizo owns a 28.64 percent working interest in the well.
        The well commenced production on March 19, 2001 and is currently
        producing at a rate of 8,200 Mcfe per day.  A follow-up development
        well targeting the same productive intervals is now planned and is
        expected to spud during the first part of May.
     -- The Company commenced drilling on the "USX Hematite Unit #1 Well #4" in
        the Cedar Point Project Area in Chambers County, Texas, in March 2001.
        The well reached total depth on April 12, 2001 and logged approximately
        32 feet of apparent net pay in the Vicksburg sand interval.  Carrizo is
        the operator and owns a 35 percent working interest.  The Company
        presently is moving a workover rig onto the location to test and
        complete the well.  To date, the Company has participated in five wells
        in the project area, four of which have been successful.  Two
        additional wells are budgeted to be drilled in the area during 2001.
     -- The previously announced "Luker #2" exploratory Wilcox well in Goliad
        County, Texas commenced production on February 12, 2001 at a rate of
        approximately 5,500 Mcfe per day from the lower Wilcox pay interval.
        The well was shut-in in March 2001, dually completed in the upper
        Wilcox pay zone, and recommenced production on April 5, 2001 at a rate
        of approximately 7,100 Mcfe per day.  Carrizo owns a 15.5 percent
        working interest.  An 11,100 foot follow-up development well targeting
        the same productive intervals was spud on April 2, 2001 and is
        presently drilling at a depth of approximately 8,700 feet.
 
     Production during the first quarter of 2001 was estimated at 1.39 Bcfe.
 Natural gas production comprised approximately 84 percent of total first
 quarter 2001 production and is estimated to have averaged approximately
 12,900 Mcf per day.  Oil production is estimated to have averaged
 approximately 420 barrels per day, with total production averaging
 approximately 15,400 Mcfe per day.  The Company estimates that first quarter
 sales prices, net of hedging activities, averaged approximately $6.64 per Mcf
 and $27.15 per barrel, which should once again result in record Company
 revenues for the quarter.  Because of the high natural gas prices relative to
 oil prices, the Company sold most of its natural gas production during the
 quarter in an unprocessed state, which has a higher MMBTU content.  As a
 result, production volumes were negatively affected, while higher natural gas
 sales prices and revenues were achieved.  The natural gas sales price was
 negatively affected approximately $0.89 per Mcf by hedging activities, while
 the oil sales price was positively affected approximately $0.59 per barrel by
 hedging activities.  The oil sales price reflects the large volume of
 condensate production relative to total oil production.
     "We are pleased with the drilling results thus far this year, especially
 in light of the higher risk/return profiles and increased Company working
 interest in these wells," commented S. P. Johnson IV, Carrizo's President &
 Chief Executive Officer.  "Four of the wells drilled this year were higher
 impact wells in which we retained an average working interest of over
 40 percent, three of which were successful.  These wells are expected to
 produce at a combined gross rate of over 27,000 Mcfe per day, adding over
 8,500 Mcfe per day of new production net to Carrizo's interest.  The full
 impact of the production increase from these wells will be reflected in the
 second and third quarters as only the Neblett #3 well was online in the first
 quarter, having commenced production in late March.  With the commencement of
 production on Friday, April 27, 2001, from the Pitchfork Ranch well, we
 estimate the Company's net daily rate of production is now the highest in
 Company history, which should increase further once the USX Hematite well goes
 online.  We expect the follow-up well we are presently drilling on the Luker
 prospect and planned follow-up well to be drilled on the Neblett prospect to
 add to these increased levels.  We are also presently drilling two additional
 exploratory Wilcox wells in South Texas, which if successful, could have
 further material impact on the Company's production levels and reserves."
     Carrizo Oil & Gas, Inc., is a Houston-based energy company engaged in the
 exploration, development, exploitation and production of oil and natural gas
 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.
     Statements in this news release, including but not limited to those
 relating to the results, potential effects, risk profiles, schedule, prospects
 or estimates for current or future drilling or wells, the number of wells
 planned or budgeted to be drilled in 2001, expected revenue levels, expected
 increase in production, expected timing of drilling of follow-up development
 wells, commencement and rate of production of new wells, 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,
 operating risks, oil and gas price levels, land issues, availability of
 equipment, weather and other risks described in the Company's filings with the
 Securities and Exchange Commission.
 
       Contact:  Carrizo Oil & Gas, Inc.
                 B. Allen Connell, Director of Investor Relations
                 Frank A. Wojtek, Chief Financial Officer
                 (281) 496-1352
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X23426828
 
 

SOURCE Carrizo Oil & Gas, Inc.
    HOUSTON, April 30 /PRNewswire/ -- Carrizo Oil & Gas, Inc. (Nasdaq: CRZO)
 today announced the operating results for the first quarter of 2001.  During
 the quarter, the Company participated in the drilling of three gross wells,
 all of which were successful, resulting in a 100 percent apparent success
 rate.  Since the end of the quarter, drilling operations were completed on
 three additional wells, two of which were successful.  Drilling operations are
 presently underway on four additional wells, all targeting prospects below
 11,000 feet.
     Operating highlights during the first quarter of 2001 included the
 following:
 
     -- As previously announced, the "Pitchfork Ranch A-90 Well #1" (Zag
        Prospect) in Matagorda County, Texas, reached total depth on March 24,
        2001 and logged approximately 33 feet of net pay in the Discorbis
        sands.  The well tested at a gross rate of 10,499 Mcf of natural gas
        and 1,530 barrels of condensate, i.e. 19,679 Mcfe per day, on a
        12/64 inch choke with 6,100 pounds per square inch flowing tubing
        pressure.  Carrizo is the operator and owns a 56.2 percent working
        interest.  The well commenced production on April 27, 2001 and is
        expected to produce at a stabilized rate of 14,000 Mcfe per day.
     -- The "S. Neblett #3" Vicksburg well in Starr County, Texas, reached
        total depth on February 13, 2001 and logged approximately 180 feet of
        net pay.  Carrizo owns a 28.64 percent working interest in the well.
        The well commenced production on March 19, 2001 and is currently
        producing at a rate of 8,200 Mcfe per day.  A follow-up development
        well targeting the same productive intervals is now planned and is
        expected to spud during the first part of May.
     -- The Company commenced drilling on the "USX Hematite Unit #1 Well #4" in
        the Cedar Point Project Area in Chambers County, Texas, in March 2001.
        The well reached total depth on April 12, 2001 and logged approximately
        32 feet of apparent net pay in the Vicksburg sand interval.  Carrizo is
        the operator and owns a 35 percent working interest.  The Company
        presently is moving a workover rig onto the location to test and
        complete the well.  To date, the Company has participated in five wells
        in the project area, four of which have been successful.  Two
        additional wells are budgeted to be drilled in the area during 2001.
     -- The previously announced "Luker #2" exploratory Wilcox well in Goliad
        County, Texas commenced production on February 12, 2001 at a rate of
        approximately 5,500 Mcfe per day from the lower Wilcox pay interval.
        The well was shut-in in March 2001, dually completed in the upper
        Wilcox pay zone, and recommenced production on April 5, 2001 at a rate
        of approximately 7,100 Mcfe per day.  Carrizo owns a 15.5 percent
        working interest.  An 11,100 foot follow-up development well targeting
        the same productive intervals was spud on April 2, 2001 and is
        presently drilling at a depth of approximately 8,700 feet.
 
     Production during the first quarter of 2001 was estimated at 1.39 Bcfe.
 Natural gas production comprised approximately 84 percent of total first
 quarter 2001 production and is estimated to have averaged approximately
 12,900 Mcf per day.  Oil production is estimated to have averaged
 approximately 420 barrels per day, with total production averaging
 approximately 15,400 Mcfe per day.  The Company estimates that first quarter
 sales prices, net of hedging activities, averaged approximately $6.64 per Mcf
 and $27.15 per barrel, which should once again result in record Company
 revenues for the quarter.  Because of the high natural gas prices relative to
 oil prices, the Company sold most of its natural gas production during the
 quarter in an unprocessed state, which has a higher MMBTU content.  As a
 result, production volumes were negatively affected, while higher natural gas
 sales prices and revenues were achieved.  The natural gas sales price was
 negatively affected approximately $0.89 per Mcf by hedging activities, while
 the oil sales price was positively affected approximately $0.59 per barrel by
 hedging activities.  The oil sales price reflects the large volume of
 condensate production relative to total oil production.
     "We are pleased with the drilling results thus far this year, especially
 in light of the higher risk/return profiles and increased Company working
 interest in these wells," commented S. P. Johnson IV, Carrizo's President &
 Chief Executive Officer.  "Four of the wells drilled this year were higher
 impact wells in which we retained an average working interest of over
 40 percent, three of which were successful.  These wells are expected to
 produce at a combined gross rate of over 27,000 Mcfe per day, adding over
 8,500 Mcfe per day of new production net to Carrizo's interest.  The full
 impact of the production increase from these wells will be reflected in the
 second and third quarters as only the Neblett #3 well was online in the first
 quarter, having commenced production in late March.  With the commencement of
 production on Friday, April 27, 2001, from the Pitchfork Ranch well, we
 estimate the Company's net daily rate of production is now the highest in
 Company history, which should increase further once the USX Hematite well goes
 online.  We expect the follow-up well we are presently drilling on the Luker
 prospect and planned follow-up well to be drilled on the Neblett prospect to
 add to these increased levels.  We are also presently drilling two additional
 exploratory Wilcox wells in South Texas, which if successful, could have
 further material impact on the Company's production levels and reserves."
     Carrizo Oil & Gas, Inc., is a Houston-based energy company engaged in the
 exploration, development, exploitation and production of oil and natural gas
 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.
     Statements in this news release, including but not limited to those
 relating to the results, potential effects, risk profiles, schedule, prospects
 or estimates for current or future drilling or wells, the number of wells
 planned or budgeted to be drilled in 2001, expected revenue levels, expected
 increase in production, expected timing of drilling of follow-up development
 wells, commencement and rate of production of new wells, 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,
 operating risks, oil and gas price levels, land issues, availability of
 equipment, weather and other risks described in the Company's filings with the
 Securities and Exchange Commission.
 
       Contact:  Carrizo Oil & Gas, Inc.
                 B. Allen Connell, Director of Investor Relations
                 Frank A. Wojtek, Chief Financial Officer
                 (281) 496-1352
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X23426828
 
 SOURCE  Carrizo Oil & Gas, Inc.