Carrizo Oil & Gas Hits in Matagorda County, Texas

Carrizo Oil & Gas reports successful drilling of the "Matthes-Huebner #1" well in the Company's Matagorda Project Area in Matagorda County, Texas. The well reached total depth on December 17, 2002 and logged approximately 60 feet of apparent net pay in the Lower Frio section. Carrizo owns a 32.2125 percent working interest in the well, which is a follow-up to the successful "Staubach #1", "Burkhart #1R" and "Pauline-Huebner A-382 #1" wells that commenced production earlier this year. The well was drilled and is operated by Brigham Exploration Company. After completion and testing, the well is expected to commence production in January 2003.

The Matthes-Huebner #1 well is the fourth successful well drilled to date in the field targeting a structure estimated to cover approximately 800 acres. To date, the previous three wells have produced a total of 2.97 Bcf of natural gas and 811,000 barrels of oil or approximately 7.84 Bcf equivalent. These three wells are currently producing at a combined daily gross rate of approximately 19,260 Mcf of natural gas and 4,370 barrels of oil (45,500 Mcfe) or approximately 11,300 Mcfe net to Carrizo's working interest after royalties.

Carrizo expects to drill another follow-up well in the field in the first quarter of 2003.

Since September 30, 2002, Carrizo has been successful on five of six wells drilled in the Gulf Coast region, with two additional wells currently being drilled that are expected to reach total depth before year end. The successful wells include a test well drilled on the Company's "Rodan" prospect in Goliad County that is being completed in the Wilcox interval at a depth of approximately 9,600 feet. The deeper sands targeted by the well were found to be non-commercial.