Carrizo Oil & Gas Hits Pay with Burkhart Well

Carrizo Oil & Gas, Inc. announced that the Burkhart #1R well in the Company's Matagorda Project Area has been successfully drilled to a total depth of approximately 12,100 feet and has logged approximately 36 feet of apparent net pay in the lower Frio section. Carrizo owns a 35 percent working interest in the well which was drilled by Brigham Exploration Company as operator. The well is in the process of being completed and is expected to be tested in the next week to ten days.

The Burkhart #1R well was drilled as a relief/replacement well for the Burkhart #1 well, which was spud in March 2002 as an offset to the successful field discovery well, the Staubach #1. The Staubach #1 well originally commenced production to sales in February 2002 at 2,094 barrels of oil and 4,769 Mcf of gas (17,333 Mcfe) per day and is currently producing approximately 1,850 barrels of oil and 4,700 Mcfe of gas (15,800 Mcfe) per day. Carrizo owns a 35 percent working interest before payout and a 29.75 percent working interest after payout in the Staubach #1 well.

During the drilling of the Burkhart #1 offset well, Brigham experienced a loss of surface control from an unanticipated pay interval at 10,370 feet, causing the well to flow natural gas to the surface. The pay interval encountered was shallower and separated by a fault from the lower Frio interval currently producing in the Staubach #1. Several days later the Burkhart #1 bridged off naturally and was shut in. The Burkhart #1R well was then spudded in order to intersect and cement the original Burkhart #1 borehole over the middle Frio interval that generated the uncontrolled flow. This operation was successfully completed on June 7th. The Burkhart #1R well was then deepened to target the lower Frio sands currently producing in the Staubach #1.

In light of the successful drilling results in the field, Carrizo has built a surface location and plans to spud the "Pauline Huebner A-382 #1" well next week, which will target the lower Frio interval at the northern end of the estimated 800 acre structure. Carrizo will be the operator and expects to retain at least a 50 percent working interest in the well. Brigham is also participating in this well. The success of this well could lead to multiple development well opportunities in the field.