CRZO
Posted: Tue Jan 27, 2015 10:33 am
I will update the CRZO forecast model later today. I am speaking at the Petroleum Accountants Society of Houston ("PASH") luncheon today. - Dan
HOUSTON, Jan. 27, 2015 (GLOBE NEWSWIRE) -- Carrizo Oil & Gas, Inc.'s (CRZO) senior management is hosting an analyst conference today to provide an update on the company's current operations and future plans. The presentation includes the following key highlights:
• Initiating 2015 crude oil production growth target of 17%
• Announcing 2015 drilling and completion capital expenditure plan of $450-$470 million
• Reporting preliminary Q4'14 crude oil production of 22,130 Bbl/d, above the high-end of guidance
• Increasing average Eagle Ford Shale per-well EURs to 510 MBoe from 499 MBoe
• Decreasing average expected Eagle Ford Shale well costs to $5.8 million
• Confirming 40-acre downspacing in the Niobrara B bench
• Reporting initial results from the Brown 1H well in the Utica Shale, which delivered a recent 6-day rate of 502 Bbl/d of condensate and 1.1 MMcf/d of rich gas on a 16/64" choke
S.P. "Chip" Johnson, IV, Carrizo's President and CEO, commented, "2014 was a record year for Carrizo as we delivered crude oil production growth of approximately 63%. While 2015 looks to be a more challenging year given the sell-off in commodity prices, our combination of high-return assets, operational flexibility, and solid balance sheet have us well positioned to manage the downturn and be able to take advantage of opportunities that may arise. For 2015, we're trimming our drilling and completion capital expenditure plan by ~35%, but still expect to keep oil production roughly flat with the fourth quarter of 2014. This should maintain our strong balance sheet and also allow us to quickly resume rapid oil production growth once prices recover."
"Given the decline in commodity prices, we have been working diligently to reduce our service costs. As an example, we have achieved cost savings of ~12% from late 2014 levels in the Eagle Ford Shale, and expect this to increase to ~20% by year-end. If commodity prices stay at depressed levels, we would expect service costs to decline further."
"We are pleased with the results from our second well in the Utica Shale, the Brown 1H. This was an updip test of our acreage in the play and helps de-risk our western acreage position. We plan to perform an extended flow test on the well to better understand the reservoir performance in this part of the play."
HOUSTON, Jan. 27, 2015 (GLOBE NEWSWIRE) -- Carrizo Oil & Gas, Inc.'s (CRZO) senior management is hosting an analyst conference today to provide an update on the company's current operations and future plans. The presentation includes the following key highlights:
• Initiating 2015 crude oil production growth target of 17%
• Announcing 2015 drilling and completion capital expenditure plan of $450-$470 million
• Reporting preliminary Q4'14 crude oil production of 22,130 Bbl/d, above the high-end of guidance
• Increasing average Eagle Ford Shale per-well EURs to 510 MBoe from 499 MBoe
• Decreasing average expected Eagle Ford Shale well costs to $5.8 million
• Confirming 40-acre downspacing in the Niobrara B bench
• Reporting initial results from the Brown 1H well in the Utica Shale, which delivered a recent 6-day rate of 502 Bbl/d of condensate and 1.1 MMcf/d of rich gas on a 16/64" choke
S.P. "Chip" Johnson, IV, Carrizo's President and CEO, commented, "2014 was a record year for Carrizo as we delivered crude oil production growth of approximately 63%. While 2015 looks to be a more challenging year given the sell-off in commodity prices, our combination of high-return assets, operational flexibility, and solid balance sheet have us well positioned to manage the downturn and be able to take advantage of opportunities that may arise. For 2015, we're trimming our drilling and completion capital expenditure plan by ~35%, but still expect to keep oil production roughly flat with the fourth quarter of 2014. This should maintain our strong balance sheet and also allow us to quickly resume rapid oil production growth once prices recover."
"Given the decline in commodity prices, we have been working diligently to reduce our service costs. As an example, we have achieved cost savings of ~12% from late 2014 levels in the Eagle Ford Shale, and expect this to increase to ~20% by year-end. If commodity prices stay at depressed levels, we would expect service costs to decline further."
"We are pleased with the results from our second well in the Utica Shale, the Brown 1H. This was an updip test of our acreage in the play and helps de-risk our western acreage position. We plan to perform an extended flow test on the well to better understand the reservoir performance in this part of the play."