Carrizo Oil & Gas, Inc. is a Houston-based energy company engaged in the exploration, development, exploitation and production of oil and natural gas. The Company's exploration efforts utilize advanced 3-D seismic techniques to identify potential oil and gas reserves and drillsites. The Company has typically sought to control significant prospective acreage blocks for targeted 3-D surveys and drilling. Since its formation in 1993, the Company assembled over 400,000 gross acres under lease or option and has acquired the rights to over 6,850 square miles of 3-D seismic data, the majority of which is in 60 project areas in proved producing onshore trends along the Texas and Louisiana Gulf Coast regions. After the 3-D seismic data is analyzed, Carrizo seeks to retain and/or control such acreage as it deems most prospective and releases such acreage as it believes is not prospective. As of December 31, 2002, Carrizo had approximately 100,700 gross acres in Texas and Louisiana under lease or option, most of which is covered by the Company's 3-D seismic data. From the 3-D data acquired to date, Carrizo has identified and amassed a large well prospect inventory with as many as 210 potential drillsites.  

The Company anticipates, based on its past experience, that as its 3-D data is further evaluated, additional well prospects will be generated. The Company's working interest in the projects varies from 15 percent up to 100 percent and averages approximately 50 percent.

Carrizo also owns approximately 55,000 net mineral acres prospective for coalbed methane in the Powder River Basin in Wyoming/Montana and Southwestern Wyoming on which the Company has engaged in an active drilling and production program.

Since inception, the Company has participated in the drilling of 263 gross wells (82 net) in Texas and Louisiana with a 66 percent commercial success rate through year-end 2002. During 2002, the Company participated in the drilling of 20 gross (seven net) wells in Texas and Louisiana with an 85 percent commercial success rate. The Company anticipates participating in up to 28 gross wells during 2003.

The Company operates 85 producing oil and natural gas wells and currently has a production mix of approximately 60 percent natural gas and 40 percent oil and condensate.