| |
In March of 2000, the FASB issued FIN No. 44
which was effective July 1, 2000 and clarifies the application of
APB No. 25 for certain issues associated with the issuance or subsequent
modifications of stock compensation. For certain modifications,
including stock option repricings made subsequent to December 15,
1998, the Interpretation requires that variable plan accounting
be applied to those modified awards prospectively from July 1, 2000.
This requires that the change in the intrinsic value of the modified
awards be recognized as compensation expense. On February 17, 2000,
Carrizo repriced certain employee and director stock options covering
348,500 shares of stock with a weighted average exercise price of
$9.13 to a new exercise price of $2.25 through the cancellation
of existing options and issuance of new options at current market
prices. Subsequent to the adoption of the Interpretation, the Company
records the effects of any changes in its stock price over the remaining
vesting period through February 2010 on the corresponding intrinsic
value of the repriced options in its results of operations as compensation
expense until the repriced options either are exercised or expire.
Stock option compensation expense (benefit) relating to the repriced
options for the years ended December 31, 2002, 2003 and 2004 amounted
to $(0.1 million), $0.3 million and $1.1 million, respectively.
In December 1999, the Company reduced the exercise
price of certain warrants originally issued to affiliates of Enron
Corp. in January 1998. 250,000 of these warrants outstanding as
of December 31, 2003 and 2004 were exercised in January 2005, for
250,000 shares of the Company's common stock at $4.00 per share.
12. RELATED-PARTY TRANSACTIONS
During the years ended December 31, 2003 and
2004, the Company incurred drilling costs in the amount of and $2.2
million and $1.6 million, respectively, with Grey Wolf Drilling.
Mr. Webster is the Chairman of the Board of Carrizo and a member
of the Board of Directors of Grey Wolf Drilling. During the year
ended December 31, 2003 and 2004, the Company incurred lease operating
costs of $0.4 million and $0.4 million, respectively, with Basic
Services, Inc. Mr. Webster and Mr. Johnson are members of the Board
of
|
|
