EXHIBIT 99.2
[FAIRCHILD AND WELLS, INC. LETTERHEAD]
February 20, 2002
Carrizo Oil & Gas, Inc.
14701 St. Mary's Lane, Suite 800
Houston, Texas 77079
RE: RESERVES EVALUATION TO THE INTERESTS OF CARRIZO OIL & GAS CORP.
HEAVY OIL PROPERTIES, ANDERSON COUNTY, TEXAS
Gentlemen:
Fairchild and Wells, Inc. (FAW) has performed an engineering evaluation to
estimate proved reserves and future cash flows from heavy oil (steamflood)
properties to the interests of Carrizo Oil & Gas Corporation in Anderson County,
Texas. This evaluation was authorized by Mr. S.P. Johnson IV, President of
Carrizo Oil & Gas Corporation (Carrizo). Projections of the anticipated future
annual oil production and future cash flows have also been prepared utilizing
property development schedules provided by Carrizo. The reserves and future cash
flows to the evaluated interests were based on economic parameters and operating
conditions considered applicable and are pursuant to the financial reporting
requirements of the Securities and Exchange Commission (SEC). December, 2001
hydrocarbon prices were used in the preparation of this report and current costs
were held constant throughout the life of the properties.
The results of the study are summarized below.
SUMMARY
ESTIMATED PROVED RESERVES AND FUTURE CASH FLOWS
CAMP HILL FIELD ANDERSON COUNTY, TEXAS
TO THE INTERESTS OF CARRIZO OIL & GAS CORP.
EFFECTIVE 1/1/2002
<Table>
<Caption>
Future
Cash Flows, Before NPI (M$)
Net --------------------------------
Reserves Mbbls Undiscounted Discounted at 10%
-------------- ------------ -----------------
Proved Producing
18 Pattern Leases 687.3 5491.1 4,144.5
10 Pattern Lease 83.9 477.1 418.2
-------- --------- ---------
Total Proved Producing 771.2 5,968.3 4,562.6
Proved Undeveloped
Delaney A Lease 704.6 3,258.8 1,822.5
Temple Eastex C Lease 1,359.5 8,327.8 4,574.8
Moore A Lease 405.5 3,258.4 1,234.3
Moore B Lease 93.8 653.9 323.9
Hanks Lease 137.1 919.0 449.7
C. Rosson 1,916.0 8,583.4 2,841.5
Royall 822.2 4,056.8 704.8
-------- --------- ---------
Total Proved Undeveloped 5,438.8 29,058.0 11,951.5
Total Proved 6,210.0 35,026.3 16,514.1
</Table>
Carrizo Oil & Gas, Inc.
February 20, 2002 Page 2
FUTURE CASH FLOW - TOTAL PROJECT BY YEAR
(AFTER NET PROFITS INTEREST)
<Table>
<Caption>
Future
Cash Flows After NPI (M$)
---------------------------------------
Year Undiscounted Discounted at 10%
---- ------------ -----------------
2002 70.9 67.6
2003 34.4 29.8
2004 2,644.8 2,084.0
2005 2,381.8 1,706.2
2006 2,421.9 1,577.2
2007 2,907.1 1,721.1
2008 2,784.5 1,498.6
2009 3,466.8 1,696.2
2010 2,447.9 1,088.8
2011 1,555.3 628.9
2012 1,685.3 619.5
2013 3,161.3 1,056.4
2014 1,873.2 569.1
2015 1,651.0 456.0
2016 372.5 93.5
2017 496.8 113.4
2018 372.6 77.3
2019 379.5 71.6
2020 426.1 73.1
2021 565.7 88.2
2022 332.1 47.1
2023 325.4 41.9
2024 432.6 50.7
2025 178.3 19.0
2026 27.7 2.7
TOTAL 32,995.6 15,478.0
</Table>
Carrizo Oil & Gas, Inc.
February 20, 2002 Page 3
The estimated reserves and future cash flows shown in this report are for proved
developed producing and proved undeveloped reserves. Our estimates do not
include any value which might be attributed to interests in undeveloped acreage
beyond those tracts for which reserves have been assigned.
In performance of this evaluation, we have relied upon information furnished by
Carrizo with respect to property interests owned, production from such
properties, current costs of operation and development, current prices for
production, agreements relating to current and future operations and sale of
production. With respect to the technical files supplied by Carrizo, we have
accepted the authenticity and sufficiency of the data contained therein.
Future cash flow is presented after deducting production taxes and after
deducting future capital costs and operating expenses, but before consideration
of Federal income taxes. The future cash flow has been discounted at an annual
rate of 10 percent to determine its "present worth." The present worth is shown
to indicate the effect of time on the value of money and should not be construed
as being the fair market value of the properties Our estimates of future revenue
do not include any salvage value for the lease and well equipment
Fairchild and Wells, Inc. expresses no opinion as to the fair market value of
the evaluated properties.
The reserves included in this report are estimates only and should not be
construed as being exact quantities. They may or may not be actually recovered,
and if recovered, the revenues there from and the actual costs related thereto
could be more or less than the estimated amounts. Because of governmental
policies and uncertainties of supply and demand, the actual sales rates and the
prices actually received for the reserves along with the costs incurred in
recovering such reserves may vary from those assumptions included in this
report. Also, estimates of reserves may increase or decrease as a result of
future operations.
In evaluating the information at our disposal concerning this report, we have
excluded from our consideration all matters as to which legal or accounting,
rather than engineering, interpretation may be controlling. As in all aspects of
oil and gas evaluation, there are uncertainties inherent in the interpretation
of engineering data and, therefore, our conclusions necessarily represent only
informed professional judgments.
The titles to the properties have not been examined by Fairchild and Wells, Inc.
nor has the actual degree or type of interest owned been independently
confirmed. We are independent petroleum engineers and geologists; we do not own
an interest in these properties and are not employed on a contingent basis.
Basic geologic and field performance data together with our engineering work
sheets are maintained on file in our office and are available for review.
It has been a pleasure to serve you by preparing this engineering evaluation.
Yours very truly,
Fairchild and Wells, Inc.