Carrizo Oil & Gas, Inc.
announced that its 2004 Capital Expenditures Budget is
$45 million, excluding the recently announced $8.2 million acquisition in the
Barnett Shale trend which we expect will be financed by a mezzanine project
facility currently under negotiation. This 2004 Budget is comprised of
$40 million for drilling and $5 million for land and seismic. The $40 million
drilling budget is 68 percent higher than the Company's 2003 drilling
expenditures. This marked increase in the drilling budget will allow Carrizo
to retain substantially larger working interests in a number of wells it plans
to drill in its onshore Gulf Coast prospects in Texas and Louisiana. The
Company will fund the 2004 Capital Expenditures Budget from operating cash
flows and partially from the net proceeds of the Company's recently completed
common stock offering.