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Carrizo Touts +29% Delaware Production Jump from 2Q18 Fueled by Strong IPs

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Carrizo Oil & Gas reported its Q3 2018 results.

Delaware Production Jumps +29% from 2Q18; Touts Latest IPs

Production from the play was approximately 25,600 Boe/d for the quarter, up 29% versus the prior quarter.

Crude oil production during the third quarter was approximately 10,900 Bbls/d, accounting for 42% of the Company's production from the play.

During the third quarter, Carrizo's completion activity was spread across its Phantom and Ford West acreage, with strong results from both areas.

Touts Latest Well Results:

• the Davis 2728 Unit 10H achieved a peak 30-day rate of approximately 2,350 Boe/d (46% oil, 71% liquids) from an approximate 10,000-ft. lateral in the Wolfcamp A

• the Lovelace State Unit B912 11H has yet to achieve a peak 30-day rate, but recently averaged nearly 2,100 Boe/d (40% oil, 68% liquids) over seven days from an approximate 6,950-ft. lateral in the Wolfcamp B

• the Sandhu State 14 12H achieved a peak 30-day rate of more than 1,950 Boe/d (34% oil, 64% liquids) from an approximate 10,000-ft. lateral in the Wolfcamp A

• the Mustang State Unit 20H achieved a peak 30-day rate of more than 1,600 Boe/d (48% oil, 72% liquids) from an approximate 6,150-ft. lateral in the Wolfcamp A

While the Davis 10H and the Lovelace State 11H build upon the Company's track record of strong well results from the Wolfcamp A and B in its primary Phantom block, the Sandhu State 12H was a delineation well located on the Company's most westerly acreage in the Phantom area. Carrizo is very encouraged by the performance of this well as production has remained relatively flat, achieving a peak 60-day rate of more than 1,800 Boe/d (35% oil, 65% liquids).

The Mustang State 20H is a Wolfcamp A test located in the Company's Ford West area. The well is located approximately 3,000 ft. from its previously-drilled Mustang State 1H well and incorporated technical and operational learnings from Carrizo's early activity in the area. The Mustang State 20H continues to perform very well, having recently recorded a peak 60-day rate of more than 1,500 Boe/d (47% oil, 71% liquids).

With the Eagle Ford set to be the primary driver of the Company's production growth over the next year, Carrizo plans to focus much of its near-term Delaware Basin activity on testing additional layers as well as multi-layer cube concepts. Some of the near-term multi-layer tests the Company has planned include:

• 6-well cube in the Phantom area testing co-development of the Wolfcamp A, B, and C

• 3-well cube in the Ford West area testing co-development of the Wolfcamp A and B

Eagle Ford - 3Q Sees Jump in Drilling Activity

Production from the play was more than 39,000 Boe/d, up 5% versus the prior quarter.

• Crude oil production during the third quarter was nearly 30,000 Bbls/d, accounting for 77% of the Company's production from the play.

Carrizo drilled 32 gross (31 net) operated wells during the third quarter and completed 25 gross (24 net) operated wells. At the end of the quarter, Carrizo had 20 gross (19 net) operated Eagle Ford Shale wells waiting on completion. Carrizo currently expects to drill 95-100 gross (90-95 net) operated wells and complete 85-90 gross (75-80 net) operated wells in the play during 2018.

Performance from Carrizo's initial multipad project, located in its Brown Trust area, continues to meet expectations. The Company now believes that multipad development combined with a lower-fluid, hybrid frac design, is the optimal development strategy where applicable. Advantages of multipad development include elimination of multiple parent-well frac hits, reduction in the total number of parent/child relationships created over time, and improvement in stimulation efficiency in the reservoir through the creation of enhanced multi-directional stress profiles during completion operations. At Brown Trust, the multipad project has resulted in very strong well results coupled with a material reduction in expected long-term, parent-well downtime in the area relative to a traditional 4-6 well pad approach. Carrizo has begun operations on two additional multipad projects, a 15-well project in its Pena Winfield area and a 23-well project in its RPG area. Production from both of these large-scale projects is expected in the first half of 2019.

Production Highlights:

- Total production of 64,627 Boe/d, up +17% YOY and up +14% from 2Q18

• Crude oil production of 40,813 Bbls/d, up 17% YOY and 8% above 2Q18

• Increasing 2018 production guidance to 60,200-60,500 Boe/d from 58,700-60,100 Boe/d