Carrizo Begins Production from Beachouse #1 Well

Carrizo Oil & Gas has commenced production from it's Beachhouse #1 well in Chambers County, Texas on August 15, 2003. Carrizo is the operator of the well and owns a 28.79 percent working interest. The 11,995 foot exploratory well in the Company's Cedar Point Project Area is currently producing to sales at an estimated rate of 10,655 Mcf of natural gas and 1,375 barrels of oil (18,905 Mcfe) per day with a flowing tubing pressure of approximately 7,390 psi. During the fourth quarter, Carrizo plans to spud a second exploratory well from the same drillsite to test a separate fault block. Partners in the "Beachhouse #1" well include Palace Exploration Company, Choice Exploration, Inc., Couch Oil and Gas and Yuma Exploration and Production Company, Inc.

The Company has also completed the Pauline Huebner A-382 #2 well in the Matagorda Project Area. The well, which is near the Company's successful wells in the Providence Field, was originally completed in the lower zone with sales commencing on May 13, 2003 at a rate of 3,670 Mcfe per day. An additional zone was completed and began producing to sales on August 29, 2003. Carrizo is currently increasing the combined production of the two zones to a targeted rate of 1,000 barrels of oil and 2,300 Mcf of natural gas (8,300 Mcfe) per day. Carrizo operates the well and owns working interests ranging from 46.5 to 52.5 percent depending upon the actual depth of the zone being produced.