Carrizo Scores a Record 347.6 Bcfe in Year-End Proved Reserves

Year-end proved reserves for Carrizo Oil & Gas were a record 347.6 Bcfe based on reports from Carrizo's third-party reserve engineers. This is an increase of approximately 66 percent (net of 2007 production of 17.5 Bcfe) over the year-end 2006 proved reserves of 210 Bcfe. Year-end PV-10 value of our proved reserves was $840.0 million (as compared to $387.2 million at the end of 2006), based upon year-end average spot prices for natural gas and year-end average posted prices for oil and natural gas liquids of $5.99 per Mcf, $92.04 per Bbl and $56.67 per Bbl, respectively.

These additions resulted in the Company replacing 887 percent of 2007 production.

From year-end 2006 to 2007, our Barnett Shale reserves increased 129.3 Bcfe, or 88 percent, to 276.0 Bcfe; our Gulf Coast reserves decreased 2.1 Bcfe from 25.8 Bcfe to 23.7 Bcfe; and our Camp Hill reserves increased 10.4 Bcfe, or 28 percent, from 37.5 Bcfe to 47.9 Bcfe.

Production during the fourth quarter of 2007 was a record 5.64 Bcfe (61.3 MMcfe/d), or 54 percent above the 3.66 Bcfe (39.7 MMcfe/d) of production in the fourth quarter 2006 and 27 percent above the third quarter 2007 production. Estimated annual production for 2007 reached a record level of 17.5 Bcfe (47.9 MMcfe/d), or 49 percent higher than the 11.7 Bcfe (32.1 MMcfe/d) of production in 2006. The Company estimates that fourth quarter 2007 sales prices, including the effect of hedging activities, averaged approximately $6.83 per Mcf and $83.65 per Bbl. The natural gas sales price was benefited $0.28 per Mcf by hedging activities. The oil sales price was negatively impacted $7.03 per Bbl by hedging activities. Approximately 94 percent of fourth quarter production was natural gas, and 92 percent of total 2007 production was natural gas.

Net production as of February 7, 2008 is an estimated 76 MMcfe/d, including over 57 MMcfe/d in the Barnett Shale, with an estimated 17 MMcfe/d producing from the five new horizontal wells on the Company's Taylor lease in southeast Tarrant County. There are currently 17 net horizontal wells in the Barnett Shale already drilled but waiting on completion and/or pipeline connection. Carrizo is currently operating four rigs drilling horizontal wells, three in southeast Tarrant County and one in Parker County. We have contracted to add another H&P Flex rig that will commence drilling in April 2008, which will bring our operated rig count to five.


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