and 18,800 Mcf of natural gas (48,740 Mcfe) per day, or 12,140 Mcfe/d net to the Company's interest. The Company plans to drill four additional prospects within the next 12 months. Two of the planned wells were spud during March 2003.

Wharton and Victoria Counties

The Wharton and Victoria County project areas target both normal pressured Frio and expanded Yegua prospect opportunities identified on the Wharton County and Victoria County, Texas 3-D seismic data sets that cover approximately 83 square miles. The Company plans to drill three normal pressured Frio wells in these areas during 2003 retaining working interests as high as 51%. Although relatively small prospects, these are seismic amplitude anomaly targets that are expected to have relatively high chance of success.

SOUTHEAST TEXAS AREAS

Carrizo has now acquired approximately 587 square miles of 3-D data (including 325 square miles of newly released data delivered in 2003) over its Southeast Texas project areas which are focused primarily on the Frio, Yegua, Cook Mountain and Vicksburg formations. The Liberty Project Area and Cedar Point Project Area have proven to be successful for the Company and the Company expects that the Liberty Project Area will constitute a significant portion of the 2003 drilling program.

Liberty

Carrizo has identified and leased prospects ranging from the Frio to the Cook Mountain formations within the 223 square miles of 3-D seismic in the Liberty Project Area which, along with 60 square miles of newly released 3-D seismic data acquired in early 2003, now covers significant areas of Liberty and Hardin Counties, Texas. To date, the Company has been successful on four of six wells drilled, including one Yegua well, one Frio well and two Cook Mountain wells. The latest Cook Mountain test well drilled during the fourth quarter of 2002, the "Hankamer #1" well, logged approximately 40 feet of net pay in the Cook Mountain interval and tested at a gross rate of 10,490 MCF of natural gas and 772 barrels of oil (15,122 Mcfe). Carrizo operates the well and owns a 40% working interest. Efforts to put the well online have been delayed due to flooding late last year and the inability to connect to infrastructure, however, the well is expected to commence production in early April 2003. Carrizo plans to drill three additional wells in the Liberty Project Area during 2003.

Cedar Point

The Cedar Point Project Area is located in Chambers County, Texas, adjacent to Trinity Bay. The 30 square mile 3-D survey targets the lower Frio and Vicksburg formations. Five of six wells drilled to date have been successful. Carrizo plans to drill an additional well in 2003. The Company's working interest in leases in this project area is approximately 25%.

SOUTH TEXAS

LaSalle and McMullen Counties

The South Texas Project Area is located in LaSalle and McMullen Counties, Texas. Analysis and interpretation of the 65 square mile proprietary 3-D seismic survey has revealed two large Sligo Patch reef prospects. The Company believes these prospects could hold significant potential, and expects to spud the first test well in late 2003. The Company currently has an approximate 79% working interest in these prospects, but expects to sell down a portion of its interest to industry partners in order to mitigate the exploration risk and the Company's financial exposure.

LOUISIANA

LaRose

During 2002, the Company successfully drilled and completed the "Louisiana Delta Farms #2" well, offsetting the LaRose Prospect 2001 discovery well, the "Louisiana Delta Farms #1", in Lafourche Parish, Louisiana. Carrizo operates the wells and owns a 40% working interest. Through February 2003, the two wells have produced over 4.5 Bcfe since commencement of production. The Company plans to participate in the drilling of three additional wells in areas either near or within the LaRose Project Area during 2003. During 2002, the Company acquired the rights to over 1,150 square miles of additional 3-D seismic data in Louisiana for future potential prospect evaluation.

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