Carrizo uses the equity method of accounting to record its minority ownership in the operations of Pinnacle, formed in June 2003. Accordingly, the proved reserve tables, above, do not include the Company's interest ownership, 26.9% on a fully diluted basis, in the proved reserves of Pinnacle at the end of 2003, or an estimated 4.9 Bcfe of proved reserves.

STANDARDIZED MEASURE

The standardized measure of discounted future net cash flows relating to the Company's ownership interests in proved oil and natural gas reserves as of year-end is shown below:

Future cash flows are computed by applying year-end prices of oil and natural gas to year-end

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