Carrizo Sets Reserves Record

Carrizo Oil & Gas, Inc. on Thursday announced its 2006 year-end reserves and production for the fourth quarter and full year 2006.


Year-end proved reserves were a record 210 Bcfe based on reports from Carrizo's third-party reserve engineers. This is an increase of 39 percent (net of 2006 production of 11.7 Bcfe) over the year-end 2005 proved reserves of 150.6 Bcfe. Year-end PV-10 value was $394 million, based upon average posted prices for natural gas and oil of $5.40 per Mmbtu and $59.25 per Bbl, respectively.

These additions resulted in the Company replacing 607 percent of 2006 production.

Barnett Shale reserves increased 64.5 Bcfe, or 79 percent, to 146.6 Bcfe. Gulf Coast reserves decreased slightly from 26.0 Bcfe to 25.8 Bcfe, almost replacing its production of 7.3 Bcfe. Camp Hill reserves decreased 5.0 Bcfe, or 12 percent, from 42.5 Bcfe to 37.5 Bcfe, primarily due to a small reduction in the net acreage under lease. Efforts are underway to reacquire these leases.


Production during the fourth quarter of 2006 was a record 3.66 Bcfe (39.7 Mmcfe/d), or 33.7 percent above the 2.73 Bcfe (29.7 Mmcfe/d) of production in the fourth quarter 2005 and 28.0 percent above the third quarter 2006 production. Estimated annual production for 2006 reached a record level of 11.7 Bcfe (32.1 Mmcfe/d), or 21.8 percent higher than the 9.6 Bcfe (26.3 Mmcfe/d) of production in 2005. The Company estimates that fourth quarter 2006 sales prices, including the effect of hedging activities, averaged approximately $6.76 per Mcf and $59.15 per barrel. The natural gas sales price was benefited $0.59 per Mcf by hedging activities. The oil sales price was benefited $0.06 per Bbl by hedging activities. Approximately 88 percent of fourth quarter production was natural gas, with 87 percent of total 2006 production being natural gas.

Carrizo Oil & Gas, Inc., is a Houston-based energy company actively engaged in the exploration, development, exploitation and production of oil and natural gas primarily in proven onshore trends along the Texas and Louisiana Gulf Coast regions and the Barnett Shale area in North Texas. Carrizo controls significant prospective acreage blocks and utilizes advanced 3-D seismic techniques to identify potential oil and gas reserves and drilling opportunities.