Carrizo Oil & Gas Prices Direct Offering of Common Stock

Carrizo Oil & Gas has received commitments to purchase 1.8 million shares of its common stock (or approximately 6.8% of the fully diluted shares outstanding) from certain qualified investors in a registered direct offering at a price of $41.40 per share. The shares are being offered through a prospectus supplement to the Company's effective shelf registration statement. The net proceeds to Carrizo from the offering, after placement agents' commissions and reimbursed expenses, will be approximately $72.1 million. Carrizo intends to use substantially all of the net proceeds to fund in part its capital expenditure program, including its drilling and leasing programs in the Barnett Shale, appraisal well drilling in the North Sea and for other corporate purposes. Pending those uses, Carrizo intends to use a portion of the net proceeds to repay the $50 million outstanding borrowings under its revolving credit facility.

RBC Capital Markets acted as lead placement agent for the offering. The other placement agents in this offering were comprised of Capital One Southcoast, Inc., Johnson Rice & Company L.L.C., BMO Capital Markets Corp., KeyBanc Capital Markets Inc., Pritchard Capital Partners LLC, Tudor, Pickering & Co. Securities, Inc., Howard Weil Incorporated, Coker & Palmer, Phillips & Mullen, Inc., SunTrust Robinson Humphrey, Inc., FIG Partners, LLC, and Natixis Bleichroeder Inc. A copy of the final prospectus supplement and accompanying base prospectus relating to the offering can be obtained from RBC Capital Markets at 165 Broadway, New York, NY 10006.

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.