Eagle Ford Shale

Carrizo Oil and Gas Enters Joint Venture In Eagle Ford Shale

Carrizo Oil and Gas (CRZO) reported that the company has entered into a joint venture in the Eagle Ford Shale in Texas.

Carrizo Oil and Gas sold 20% of a 20,200 net acre position in the Eagle Ford Shale to GAIL (INDIA) LIMITED for $95 million.  The company will receive $63.65 million in cash and an additional $31.35 million in the form of a drilling carry.

Carrizo Oil and Gas also purchased additional leasehold in the Eagle Ford Shale that is not included in the deal with GAIL (INDIA) LIMITED.  The company will have a 41,000 net acre position taking into effect these purchases and the joint venture.

Carrizo Oil and Gas Advances Eagle Ford Shale Development

Carrizo Oil and Gas (CRZO) reported on recent activity in South Texas where the company has acreage prospective for the Eagle Ford Shale.   The company has 33,000 net acres under lease located mainly in the condensate window of the play.

Carrizo Oil and Gas has drilled sixteen Eagle Ford Shale wells and completed eight wells. The company is operating three rigs and estimates that it has 230 locations on its acreage. Recent well results include the Mumme 30H, Mumme 31H and Mumme 32H which had production rates between 920 and 1,184 barrels of oil equivalent (BOE) per day.  These wells also produced high BTU natural gas.

Carrizo Oil and Gas is completing three Eagle Ford Shale wells from a single pad on the Glover lease in Atascosa County and expects first production in September 2011.

Carrizo Oil and Gas Acquires Additional Eagle Ford Shale Acreage

Carrizo Oil and Gas (CRZO) announced the acquisition of 13,000 net acres of leasehold in Texas that is prospective for the Eagle Ford Shale.  This brings the company’s total exposure to 33,000 net acres.

Carrizo Oil and Gas said that the acquired acreage is in the condensate area of the Eagle Ford Shale in La Salle County, Texas. The company said that the upfront cash cost will be $21.45 million or $1,650 per acre and the total cost including the future drilling carry will “fall below $5,500 per acre on a present value basis.”

Carrizo Oil and Gas is moving an additional rig into the Eagle Ford Shale to help develop the additional acreage, bringing its operated rig count in the play to three.  This rig will start drilling the Ivey Ranch 10H well in Dimmit County.

Carrizo Oil and Gas is not raising its production guidance yet until the company can finalize and contract for additional hydraulic fracturing capacity in the Eagle Ford Shale.