Patriot Takes Minority Stake in Carrizo's Barnett Ops

Patriot Exploration Co.

Patriot Exploration Co., Inc. has entered into a participation agreement with Carrizo Oil & Gas, Inc. in Erath County, Texas, involving approximately 22,000 net and 26,000 gross acres in the Fort Worth Basin. The agreement calls for Patriot to own a 10 percent working interest in drilling and development activity in Barnett Shale acreage, where Carrizo is operator. Several highly successful Barnett Shale gas wells have already been drilled adjacent to this acreage by other operators. Patriot has made an initial commitment of $2.5 million with the potential to invest $35 million or more as work progresses in this project.

The Barnett Shale in the Fort Worth Basin in north central Texas is the most active shale gas play in North America with potential reserve estimates that exceed 25 trillion cubic feet of natural gas.

"Carrizo has extensive expertise working the seismic data and drilling horizontal wells in the Barnett Shale. Their success rate there to date has been tremendous. We're excited to participate in a very aggressive exploratory program in one of the most active and highly successful shale plays in the country," said Jonathan Feldman, founding principal and chief executive officer of Patriot Exploration.

With offices in New York and Houston, Patriot Exploration Co., Inc. works with small- to mid-size operators as a working interest partner or lender for a variety of upstream projects in the oil and gas industry. Its investments allow an operator to continue successes in development and work-over projects without the frustration of complicated financial arrangements or the worry of losing ownership of their company. Since forming five years ago, Patriot Exploration has invested more than $75 million in projects in the western and central United States and in the Gulf of Mexico. By 2009, Patriot plans to invest an additional $150 million to $200 million in growth-oriented domestic projects.

Carrizo Oil & Gas, Inc. is a Houston-based independent energy company engaged in the exploration, development and production of natural gas and oil. Current operations are focused in the Barnett Shale area in North Texas and in proven, producing natural gas and oil geological trends along the onshore Gulf Coast in Texas and Louisiana, primarily in the Miocene, Wilcox, Frio, and Vicksburg trends.