Carrizo Oil & Gas, Inc. announced that the Carrizo Board of Directors has approved a 2013 drilling and completion program of $500 million to be allocated as follows:
The approved 2013 capital spending plan for land, seismic, and related activities is $124 million.
Carrizo President and CEO, S. P. "Chip" Johnson, IV commented on the approved spending program, "This 2013 plan allows us to maintain our current level of drilling activity plus the addition of a new rig working in the Niobrara Formation for the entirety of 2013. Our rig count will remain at three rigs running in the Eagle Ford Shale, one rig drilling in the Marcellus Shale and now two rigs running in the Niobrara Formation. This drilling activity supports our previously announced 2013 production forecast for approximately 28 percent annual growth in oil production and a natural gas production decline of approximately 3 percent. Our land acquisition costs are expected to be heavily front-end loaded and includes the cost to exercise our southern Utica acreage option with Avista Capital. Based on very encouraging drilling results in the southern Utica Shale play, yesterday we elected to exercise our land purchase option with Avista Capital for approximately $63 million. After the land purchase, Carrizo will own approximately 14,000 net acres in the play predominantly located in Guernsey, Noble, and Tuscarawas Counties, Ohio.
"Enough of our analysis of production data for the fourth quarter has been completed for us to update our prior guidance. Our oil production for the quarter is now expected to be near the high end of guidance of 8,100 to 8,700 Bbl/d and our fourth quarter natural gas and NGL production is also expected to be near the high end of our previous guidance of 88,000 to 99,000 Mcf/d."
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