CRZO joins the Sweet 16

[dan_s]

Carrizo Oil & Gas is joining the Sweet 16, replacing PDS after the markets close on Friday. I have been watching it all year and now believe the company will be generating a significant increase in their liquids production. CRZO is still a "gasser" but they have ~50% of forecast natural gas production hedged at over $6.28/mcf. It is their Eagle Ford and Niobrara potential that I like. I will have an update Company Profile and my for CRZO with my forecast and Fair Value estimate on the website late today for our Premium Members. - Dan

HOUSTON, TX--(Marketwire - 11/30/10) - Carrizo Oil & Gas, Inc. (NASDAQ:CRZO - News) today is providing an operational update on the Company's activities in the Eagle Ford Shale and Niobrara Formation. Carrizo's initial two Eagle Ford Shale wells were drilled from a common surface location in central La Salle County, Texas. The Mumme Ranch 10H was drilled with a 5,493 foot horizontal leg and was completed with 15 frac stages. The Mumme Ranch 12H was drilled with a 5,455 foot horizontal leg and was completed with 19 frac stages. Following the flow-back of completion fluids, the two wells were tested for production potential beginning on November 20, 2010. The Mumme 10H had a 24-hour initial production rate of 1,011 barrels of oil per day ("Bopd") while the Mumme 12H had a 24-hour initial production rate of 1,220 Bopd. Production from this two-well pad appears to have stabilized at the current combined rate of approximately 1,125 barrels of oil per day. Approximately 2 million cubic feet per day of 1,367 btu per mcf natural gas is currently being flared pending connection to a gas gathering pipeline. Carrizo has a 100% working interest and a 75% net revenue interest in these two wells.

Hydraulic fracture stimulation activities have been completed on the Company's next Eagle Ford well, the Pierce 10H, located to the southwest of the Mumme wells, and the well has commenced flow-back today. It is currently anticipated that initial production results for this well should be available before the end of the year. Carrizo owns approximately 20,000 net acres in the Eagle Ford Shale play, the majority of which are located in the condensate window of La Salle, Dimmit, and McMullen Counties. In addition to the three wells mentioned in this announcement, Carrizo has drilled two other Eagle Ford horizontal wells in La Salle County which are currently waiting on completion, expected to begin in the first quarter of 2011.

On the Company's Niobrara Formation acreage located in Weld County, Colorado, fracture stimulation activities are scheduled to commence on the State 16-11-9-60H on December 1, 2010. Initial production results are expected to be available from this well before the end of this year. The drilling of the vertical portion of the Company's second Niobrara well, the Bob White 36-44-8-62H, has been completed and protective casing has been installed through the curve. The drilling of the horizontal leg is currently under way. Initial production results from this well are expected in January 2011. A third Niobrara well is planned to be drilled in Section 36, Township 9N, Range 61W of Weld County immediately following finalization of the drilling of the Bob White well. Carrizo owns approximately 59,000 net acres in the Niobrara play, all of which are located in Weld County.

[dan_s]

HOUSTON, TX--(Marketwire - 12/07/10) - Carrizo Oil & Gas, Inc. (NASDAQ:CRZO - News) today in anticipation of an investor presentation to be delivered in New Orleans is providing the following operational update on the Company's activities. The Company's third Eagle Ford Shale well to be brought on production, the Pierce 10H, located in La Salle County, Texas, was production tested over 24 hours beginning on December 2nd. This well flowed 1,035 barrels of oil per day (bopd) and 3,085 thousand cubic feet per day (mcfpd) of high BTU content natural gas. As of noon on December 6th, this well was producing at a controlled rate of 600 bopd and 2,326 mcfd of natural gas is currently being flared. Carrizo owns a 100% working interest and a 75% net revenue interest in this well. Carrizo's previously announced two-well pad, the Mumme lease, is currently producing at a controlled rate of 1,260 bopd and flaring 1,800 mcfpd of gas. The initial production results from these two wells were announced on November 30, 2010. The Company anticipates that the Mumme and the Pierce wells will be connected to gas gathering systems and Eagle Ford natural gas sales will commence at approximately 3,450 mcfpd before the end of this year.

In the Niobrara Formation, fracture stimulation has been completed on Carrizo's first Niobrara well, the State 16-11-9-60H, and the well is expected to commence flowback by week's end. The horizontal leg of the Company's second Niobrara well, the Bob White 36-44-8-62H, has been completed and production casing has been installed. Fracture stimulation of this well is expected to begin in early January 2011. The rig is moving to the third, and final, 2010 Niobrara well location, which is currently expected to spud mid-week.

In the Barnett Shale, third party midstream pipeline efforts to accommodate the increase in natural gas volumes being brought on by southeast Tarrant County, Texas area producers continues to fall behind schedule. As a result, high gas gathering and transmission line pressures have caused Carrizo's Barnett production to lag the guidance for the fourth quarter of 2010, announced during the third quarter's earnings announcement conference call. Our third party midstream provider is currently attempting to remedy this situation by adding additional compression to their pipeline system. It is the Company's estimation, based on the information currently available, that total company production for the fourth quarter of 2010 will be approximately 114 million cubic feet of natural gas equivalents per day (mmcfepd), or approximately 5% below prior guidance. The Company still expects that prior guidance for a year-end exit rate of approximately 127 mmcfepd will be met or exceeded if the remaining hookups to be completed by our midstream provider in the Barnett Shale are completed on the schedule provided by the service provider. In addition, due to the initiation of Eagle Ford oil production, we expect that the Company's ratio of oil to natural gas production for the fourth quarter will be higher than our historical average.

In the Marcellus Shale, the first Carrizo-operated drilling rig in North East Pennsylvania is onsite and rigging up in Susquehanna County. The first of 6 wells to be drilled from this pad site is expected to spud by Wednesday.

[dan_s]

I met with the company on Tuesday. This money is primarily going to be used to accelerate their Eagle Ford Shale drilling program. They now expect to drill up to 20 Eagle Ford wells in 2011.

HOUSTON, TX--(Marketwire - 12/09/10) - Carrizo Oil & Gas, Inc. (NASDAQ:CRZO - News) announced today that it has agreed to sell 3,500,000 shares of its common stock in an underwritten public offering under an effective shelf registration statement. The underwriter will have an option to purchase up to an additional 475,000 shares from Carrizo to cover any over-allotments. The Company intends to use the net proceeds from the offering to repay borrowings under its revolving credit facility. The Company expects to use the resulting additional capacity under its revolving credit facility to fund, in part, its 2011 capital expenditure plan for development of the Eagle Ford Shale play and Niobrara play, including the addition of one rig in the Eagle Ford, and for general corporate purposes.

[ghrcap]

Glad to see their inclusion. They were early and smart in the Barnett and their "nose" for emerging plays has continued and sharpened.

[dan_s]

30-Nov-10 09:28 ET CRZO
Carrizo Oil & Gas target raised to $35 at Howard Weil
Howard Weil raises their CRZO tgt to $35 from $29 based on strong initial results from CRZO's much-anticipated first couple of Eagle Ford wells. These rates and condensate percentage were better than they had expected and should provide a boost to the stock.

See my forecast model on the website for my Fair Value estimate.

[setliff]

on the day of the ops update and presentation, dec 7, they opened up and went to 34+ before dropping during the day to 30+.

do you know the specific reason for the drop? my untrained eyes are finding no negatives????

tia
jim

[dan_s]

The market views CRZO as a gasser. It will take proven growth of their liquids production to change that. It is their liquids growth that I'm counting on. See our profile and forecast under the Sweet 16 tab.

[wturk]

I think the drop in CRZO price was due to the announcement of the issuance of 3.5million shares....I have not heard that they have announced the price of these shares yet..Short-term negative but positive midterm and lonh-term.....should provide more growth.

[dan_s]

I talked to the company about the secondary last week. The money will be used to fund an accelerated Eagle Ford and Niobrara development drilling program. They have significant upside in both plays.

Under the Sweet 16 tab on the website we have the Carrizo logo but when you click it you see the old PDS stuff. We should have that corrected soon. Sorry.

[dan_s]

CRZO is up almost 7% since I added it to the Sweet 16 on December 20.

We now have the website fixed. Premium Members can find our company profile and a detailed Net Income and Cash Flow Forecast model for CRZO under the Sweet 16 tab. Just click on the website.

I'm very bullish on what CRZO has going in the Eagle Ford, Niobrara and Marcellus. This is a company with a strong technical team that knows how to drill and complete shale wells.

Dan

[setliff]

jumped on it that day after dd over the week-end. had trouble deciding between eog and crzo.