Exploration & Production | Quarterly / Earnings Reports

Carrizo Reports Big Niobrara Well; Testing B Bench

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Carrizo provided the follow 3rd quarter operational update.

Niobrara Shale

In the Niobrara Formation, Carrizo drilled 15 gross (4.7 net) operated wells during the third quarter, and completed 14 gross (4.7 net) wells. Crude oil production from the Niobrara increased to more than 1,800 Bbls/d during the third quarter from approximately 1,600 Bbls/d in the second quarter. Carrizo is operating two rigs in the Niobrara and currently expects to drill 56 gross (18 net) operated wells during the year.

Recent highlights from the Niobrara include strong wells in the Hemberger and Bringelson areas. In the Hemberger area, the Schneider 2-14-8-60 reached a peak 24 hour gross production rate of 1,086 Boe/d (936 Bbls/d of oil and 897 Mcf/d of gas). The well was drilled with an effective lateral of 4,134 ft. and completed with 14 frac stages. Carrizo is the operator of, and holds a 9% working interest in, the Schneider well. In the Bringelson area, the Castor 3-36-9-59 reached a peak 24 hour gross production rate of 858 Boe/d (774 Bbls/d of oil and 507 Mcf/d of gas). The well was drilled with an effective lateral of 3,531 ft. and completed with 12 frac stages. Carrizo is the operator of, and holds a 30% working interest in, the Castor well.

Carrizo is currently participating in a number of tests to determine the optimal development spacing in the Niobrara. During the third quarter, Carrizo drilled its initial 60-acre downspacing tests in the play, which were located in the Company's Bob White and Hemberger areas. The Bob White wells were recently completed while the Hemberger wells are expected to be completed by year-end. Carrizo is the operator of, and currently holds a 60% working interest in, the Bob White area wells and a 57% working interest in the Hemberger area wells.

In the State 36 area, Carrizo recently drilled another 60-acre downspacing test, and has begun drilling its initial 40-acre downspacing test in the play. Carrizo is the operator of, and currently holds a 37% working interest in, the State 36 area wells. Additionally, Carrizo has elected to participate in a downspacing test operated by Noble Energy in its Rohn area (within East Pony), which is expected to test downspacing as tight as 40-acres as well as potential in the A, B and C benches. Carrizo holds less than a 1% working interest in this project.

The Company is also participating in a downspacing test operated by Whiting Petroleum in its Razor area (within Redtail), which is expected to test downspacing as tight as 40-acres as well as potential in the A and B benches. Carrizo's working interest in these wells ranges from 4% to 24%. As Carrizo is currently assuming 80-acre spacing in only the B bench for its development plan, successful results from these downspacing pilots has the potential to materially increase its Niobrara inventory.