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Carrizo Limits Marcellus Production; Spuds First Utica Well
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Marcellus Shale Update
In the Marcellus Shale, Carrizo drilled 9 gross (2.7 net) wells during the second quarter, and completed 12 gross (3.3 net) wells. Natural gas production from the Marcellus was 33.9 MMcf/d in the second quarter, down from 38.0 MMcf/d in the first quarter as the Company shut-in a number of its wells in Wyoming County during the quarter due to completions of offset wells. Additionally, with the weak local gas prices in Appalachia, Carrizo is often electing to limit its production until regional prices improve. The Company estimates its net production capacity from wells currently drilled and completed in the Marcellus Shale to be more than 60 MMcf/d. Carrizo expects to keep one horizontal rig active in the Marcellus Shale for the remainder of the year, which should allow it to drill a total of 32 gross (10 net) wells during 2013.
Prior to year end, Carrizo plans to spud two Upper Marcellus Shale infill tests at its Plushanski pad in Wyoming County, PA, with completion of the wells expected in early 2014. Carrizo is the operator of, and expects to hold an average working interest of, approximately 21% in these wells.
Utica Shale Update
In the Utica Shale, Carrizo recently spudded its first operated well, the Rector 1H in Guernsey County, OH. Plans currently call for the well to have an 8,000 ft. lateral and to be completed with 28 stages. Once completed, Carrizo plans to rest the well for approximately 60 days before commencing flowback operations. Carrizo has a 47.5% working interest in the Rector 1H well.