Energy Intel: "Carrizo Oil & Gas Reports Impressive Increases"

Carrizo Oil & Gas has reported impressive increases in proved reserves and production, thanks largely to its work in the Barnett Shale gas play of North Texas.

Recent changes in reserve reporting rules mandated by the Securities and Exchange Commission enabled Carrizo to book an additional 47.4 Bcfe of proved reserves in the Barnett Shale at year-end 2009, most of which were proved undeveloped.

Carrizo’s Barnett Shale reserves were 137.6 Bcfe at year-end 2009, up 32% from year-end 2008. Proved developed reserves increased 39% to 86.2 Bcfe.

Carrizo holds 56,000 net acres in the Barnett Shale, and had 33 net horizontal wells drilled and awaiting completion or pipeline connection there at year-end 2009. The independent also recently entered a $16 million joint venture in the play with Japan’s Sumitomo.

“We view Sumitomo as a strong partner that will permit us to opportunistically accelerate drilling in our core Barnett Shale development area,” Chip Johnson, chief executive of Carrizo said in December (OD Dec.16,p6).

Carrizo also has a two-year old partnership in place with private equity firm Avista Capital Partners in the emerging Marcellus Shale, where it has yet to see first production. Carrizo holds 108,000 net acres in the Marcellus.

The Houston-based independent also holds acreage in the Fayetteville Shale in Arkansas, and the Texas and Louisiana Gulf Coast regions, along with prospective positions in the Marfa Basin and the Floyd and New Albany shales.

Carrizo said it replaced 400% of its production in 2009 and ended the year with total proved reserves of 601.9 Bcfe, 20% higher than year-earlier levels.

“We had an excellent operational year in net reserve additions despite our reduced drilling program and the impact of lower prices,” said Chief Operating Officer Brad Fisher.

Fourth-quarter production rose 20% from the year-earlier period to 8.7 Bcfe (94.4 MMcfe/d), while full-year production increased 28.9% to 33.0 Bcfe (90.5 MMcfe/d). Natural gas made up about 97% of production volumes.

Carrizo has also set a 2010 capital spending budget of $170 million. Of this, $130 million (76%) will fund drilling and completion activities in the Barnett Shale, $31 million will be spent on the Marcellus Shale, and the remaining $9 million will be invested in other areas.

By Rachael Seeley for Energy Intelligence. March 4, 2010.

SOURCE:
Energy Intel

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Posted by admin on March 4th, 2010. Filed under Fayetteville, Marcellus Shale, Natural Gas. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry