Barnett Shale

Carrizo Oil and Gas Sells Barnett Shale Leasehold

Carrizo Oil and Gas (CRZO) reported that the company is selling acreage in Texas that is currently producing from the Barnett Shale formation.

Carrizo Oil and Gas is selling 13,000 acres to KKR Natural Resources for $104 million. The properties have 75 gross or 58.5 net wells with gross production of 15.7 million cubic feet of natural gas equivalents per day (8.3 million on a net basis). Proved reserves total 122.4 Bcfe of which 55% are proved undeveloped.

Carrizo Oil and Gas said that the proceeds will be used to reduce borrowings on its credit line and help fund its 2011 capital budget.

Carrizo Oil and Gas Updates Barnett Shale Operations

Carrizo Oil and Gas (CRZO) updated its drilling operations on its Barnett Shale properties in Texas. The company has 52,000 net acres that are prospective for the Barnett Shale.

Carrizo Oil and Gas has completed and put onto production twenty-two wells at the University of Texas at Arlington. These Barnett Shale wells are producing 62 million cubic feet equivalent per day of natural gas, and total production from all the company’s Barnett Shale wells is 112 million cubic feet equivalent per day.

Carrizo Oil and Gas has 570 billion cubic feet equivalent of proved reserves in the Barnett Shale as of 12/31/2009.

Carrizo Oil and Gas - Barnett Shale Update

Carrizo Oil and Gas (CRZO) released an operational update on its exploration and development activities, and updated its progress in various unconventional resource basins, including the Barnett Shale in Texas.

Carrizo Oil and Gas has 52,000 net acres under lease in the Barnett Shale. The company’s current focus of activity is on its project area at the University of Texas at Arlington. The company recently finished drilling 16 wells, and have 8 are flowing to sales. The balance of the wells will be completed beginning in May 2010.