Energy Prospectus

Sweet 16 Growth Portfolio: An updated Net Income & Cash Flow Forecast model for Carrizo Oil & Gas (CRZO) has been posted under the Sweet 16 Tab.

I have lowered my Fair Value Estimate but it is still way above First Call's Price Target of $30.84. Production guidance for 2013 was lower than I'd hoped for.

I like the fact that they will now keep six rigs running all year, focused on increasing oil production and proven reserves. They have several years of low risk drilling inventory in both the Eagle Ford and Niobrara.

New acreage in the southern party of the Utica Shale (near GPOR) adds another very promising oil play.

If natural gas prices keep drifting up it will be a major positive for CRZO.

In the following excerpt from the Oil & Gas: Refining, Independent and Major Integrated Report, the CEO of Carrizo Oil & Gas discusses the outlook for his company for investors:

TWST: You achieved record oil production in the third quarter. What factors contributed to that increase, and what is the outlook for oil production in 2013?

Mr. Johnson: We were able to reach the record production numbers because we have shifted our capital and drilling program to focus on the Eagle Ford shale and the Niobrara shale; the Eagle Ford in South Texas, the Niobrara in Northern Colorado. Those are primarily oil plays. So we have been adding oil production consistently really for about two years now and reached this record level. At the current drilling pace we have now, we will grow another 28% in oil production domestically from 2012 through 2013.

TWST: Which do you view as the important shales right now and what is your position in each? And which do you think will become increasingly important over the next two to four years?

Mr. Johnson: We want to keep drilling in these two shales where we are active now. We have also been buying acreage in the southern Utica shale in Ohio and that will become a part of our drilling program probably in 2014 and 2015.

Full Article: http://finance.yahoo.com/news/wall-stre ... 00967.html