CRZO

[dan_s]

CRZO was added to the S-16 because of the potential I believe they have in the Niobrara Shale and, to a lesser extent what they have in the Eagle Ford. I think the shares a cheap right now. IMO the market over-reacted to the announced delay on getting a few Eagle Ford wells tied in to a gas gathering line. Use these dips on short-term issues as a buying opportunity.

This is what I really like about CRZO:
• Carrizo holds 61,000 net acres in the Niobrara Shale in Weld County, Colorado.
• The Company has just completed their first Niobrara well which is flowing at a rate of over 500 BOPD.
• CRZO will have drilled and tested three Niobrara wells by the end of January on locations which have been high-graded by the existence of deeper wells drilled in the immediate area.
• Analogs in the area are very promising. EOG Resources (EOG) has two wells in the area that have both produced at average rates over 800 BOPD for six months.
• Noble Energy (NBL) is estimating that their horizontal Niobrara wells will produce over 500,000 bbls of oil.
• Carrizo’s initial, unrisked estimates are that their Niobrara Shale acreage could hold up to 23 million bbls of recoverable oil.
• There is abundant infrastructure in this area of Colorado with easy access to oil markets.
• Based on the estimate type curve for these wells ($3.5 million completed well cost), the IRR is 139% with $80/bbl NYMEX oil. At today's NYMEX stip price the IRR is pushing 180%.

[dan_s]

I met with CRZO and they are very bullish on what they have in the Niobrara Shale.

http://stocks.investopedia.com/stock-an ... er=YahooSA