EXHIBIT 99.1
PRESS RELEASE Contact: Carrizo Oil & Gas, Inc.
B. Allen Connell, Director of Investor Relations
Paul F. Boling, Chief Financial Officer
(713) 328-1000
CARRIZO OIL & GAS UPDATES FOURTH QUARTER OPERATIONS; QUARTERLY AND ANNUAL
PRODUCTION REACH RECORD LEVELS
HOUSTON, February 24, 2005 - Carrizo Oil & Gas, Inc. (Nasdaq: CRZO) today
announced the operating results for the fourth quarter of 2004. In the Company's
core areas in the onshore Gulf Coast of Texas and Louisiana, the Company
participated in the drilling of nine gross exploratory wells, all of which were
successful. Eight of these successful wells have been completed, and one well is
awaiting completion. As of year end, one well was waiting on connection to a
pipeline and drilling operations were underway on three wells.
In Carrizo's Barnett Shale Project area in the North Texas area (primarily in
the Parker, Tarrant, Denton, Johnson, Hill and Erath counties), the Company
participated in the drilling of six gross wells (comprised of three horizontal
and three vertical wells), all of which were successful, and, at present, has
increased its acreage position to over 35,000 net acres. Five of these
successful wells have been completed, and one well is awaiting completion. As of
year end, 21 wells were in various stages of testing, completion or awaiting
pipeline hook-up and drilling operations were underway on two wells.
The Company's overall apparent drilling success rate in the fourth quarter 2004
was 100 percent, comprised of a total of fifteen wells drilled, all of which
were successful. For the entire year, Carrizo participated in 38 gross wells in
its onshore Gulf Coast area with 32 successes for an apparent 84.2 percent
drilling success rate. In its Barnett Shale area, the Company participated in 33
gross wells in 2004 (comprised of ten horizontal and 23 vertical wells), all of
which were successful. The overall Company success rate in 2004 was 91.6
percent, comprised of 71 gross wells drilled, 65 of which were successful.
Production during the fourth quarter of 2004 was estimated to be a record 2.43
Bcfe, or 30.6 percent above the 1.86 Bcfe of production in the fourth quarter
2003 and 19.4 percent above the third quarter 2004 production. Estimated annual
production for 2004 reached a record level of 8.32 Bcfe, or 11.5 percent higher
than the 7.46 Bcfe of production in 2003. The Company estimates that fourth
quarter 2004 sales prices, including the effect of hedging activities, averaged
approximately $6.60 per Mcf and $43.67 per barrel. The natural gas sales price
was negatively affected $0.08 per Mcf by hedging activities. The oil sales price
was negatively affected $1.98 per barrel by hedging activities. Approximately 84
percent of fourth quarter production was natural gas, with 78 percent of total
2004 production being natural gas.
In the Gulf Coast area, drilling operations have begun on one well in Duval
County (a 50 percent working interest) and a second well is expected to spud
this week (a 50 percent working interest)
in Matagorda County. In the Barnett Shale area, two wells are drilling, one
vertical (a 95 percent working interest) and one horizontal (a 100 percent
working interest).
Effective February 1, 2005, Carrizo sold to a private company its interest in
the Patterson Prospect Area in St. Mary Parish, Louisiana, including the
Shadyside #1 well and any anticipated follow-up wells, for undisclosed cash
consideration. Carrizo's average daily production from the Shadyside #1 during
the 4th quarter 2004 was approximately 970 Mcfe per day. Proceeds from the sale
will be used in the 2005 Barnett Shale and Gulf Coast drilling program and for
general corporate purposes.
Carrizo Oil & Gas, Inc., is a Houston-based energy company engaged in the
exploration, development, exploitation and production of oil and natural gas in
proven onshore trends primarily along the Texas and Louisiana Gulf Coast regions
and in the Barnett Shale area in North Texas. Carrizo controls significant
prospective acreage blocks and utilizes advanced 3-D seismic techniques to
identify potential oil and gas reserves and drilling opportunities.
Statements in this news release, including but not limited to those relating to
the results, reserves, testing, sales, potential and other effects of the
Company's wells, the Company's or management's intentions, beliefs,
expectations, hopes, projections, assessment of risks, estimations, plans or
predictions for the future including potential effects or timing, timing of
completion and drilling of wells and other statements that are not historical
facts are forward looking statements that are based on current expectations.
Although the Company believes that its expectations are based on reasonable
assumptions, it can give no assurance that these expectations will prove
correct. Important factors that could cause actual results to differ materially
from those in the forward looking statements include the results of additional
testing of the wells, results of completion and follow-up operations, the
results and dependence on exploratory drilling activities, operating risks, oil
and gas price levels, land issues, availability of equipment, weather and other
risks described in the Company's Form 10-K for the year ended December 31, 2003
and its other filings with the Securities and Exchange Commission.