Carrizo O&G Updates Ops in Niobrara Formation

Carrizo O&G provided the following update on its operations.

  • In the Niobrara Formation in Weld and Morgan Counties, Colorado:
    • Carrizo's first Niobrara well, the State 16-11-9-60, was production tested over December 26 and 27 at controlled rates of over 690 barrels of oil per day (552 BOPD net)
    • The State 16-11-9-60 is currently producing at a stable gross rate of approximately 530 BOPD
    • The next Niobrara well scheduled for hydraulic fracture stimulation, the Bob White 36-44-8-62, is expected to begin fracing on January 12th
    • Carrizo currently owns approximately 61,000 net acres in the DJ Basin Niobrara Formation oil play
  • In the Eagle Ford Shale in La Salle County, Texas:
    • Connection to gas gathering for Carrizo's three previously announced Eagle Ford oil wells has been delayed by right-of-way issues; the wells are expected to be connected and commence selling associated gas before the end of January
    • Fracing and completion activities are expected to begin on the Company's fourth Eagle Ford well, the Mumme 20H, before the end of the week
  • Carrizo production exit rate:
    • Carrizo estimates its net production exit rate for the year 2010 was 130,000 thousand cubic feet of natural gas equivalents per day