Carrizo Oil & Gas Acquires Barnett Shale Interests

Denton County, Texas
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Carrizo Oil & Gas has acquired several wells and leases in the Barnett Shale trend in Denton County, Texas from a private company for $8.2 million. These non-operated properties have an average 39 percent working interest. The acquisition includes 21 existing gross wells (6.7 net) and interests in approximately 1,500 net acres, which we expect to provide another twenty-seven gross drillsites.

Current net production from the acquired properties is approximately 1.4 MMCFE/D and net proved reserves are internally estimated at 9.7 BCFE. Probable reserves are internally estimated to be 8.1 BCFE. The effective date of the purchase is March 1, 2004.

"This acquisition in the Barnett Shale 'core area' will enhance our existing acreage position and production in Parker and Tarrant counties where we had acquired approximately 5,000 net leasehold acres prior to this acquisition," commented S.P. Johnson, IV, Carrizo's President and Chief Executive Officer. "We will also get immediate experience with horizontal well performance, since two of the existing wells are horizontal and several more are planned. While the Texas and Louisiana onshore Gulf Coast remains our primary area of operations, we feel that adding longer life reserves in the Barnett Shale trend will provide a good balance to our primarily high rate -- shorter life reserves."

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