Carrizo has had another very successful year. We continue to make substantial progress in both balancing the mix of our low risk development activities with the higher potential of exploration drilling and acreage acquisition. Our Barnett Shale position now comprises over half of both our proved reserves and current production. During the year, we were able to continue to add substantially to the option value inherent in a growing leasehold position in attractive onshore domestic basins.

During 2005, Carrizo achieved record revenues, EBITDA, production and proved reserves. Driven not only by higher realized oil and gas prices, but also by a production increase of 16%, Carrizo increased annual revenues from $52.4 million to $78.2 million, or 49%. In 2005, EBITDA increased to $56.2 million, or 55% over 2004 levels.

Production of 9.61 Bcfe in 2005 increased by 16% over the 2004 level. Year end proved reserves were up by 38% to 150.6 Bcfe. During the year, we replaced 530% of our production and achieved an all-in finding cost of $2.43 per Mcfe. We reached this record reserve level primarily through the increase in Barnett Shale proved reserves from 31.7 Bcfe to 82.1 Bcfe. We also achieved this record reserve level despite reducing our Camp Hill oil reserves by 17% to reflect a more conservative recovery factor.

Clearly, our move into the Barnett Shale has begun paying dividends. We are continuously running three horizontal drilling rigs under Carrizo's operating management. At the same time, we participate with outside operators in drilling up to four wells at any given time. Daily production has increased from 3.5 MMcfd at the beginning of 2005 to 15.0 MMcfd as of March 31,2006. In addition, there is significant additional production to be added which is waiting on either fracture stimulation or pipeline infrastructure. With the continuation of our active drilling program and the addition of gathering capacity, we expect to add significantly to both production and reserve levels in the Barnett by year end.

While the Barnett Shale has become a more prominent part of our overall capital spending program, the Gulf Coast exploration effort continues to perform well. We were successful on 16 of 19 wells drilled during 2005. With a growing base of Barnett production and proved reserves, Carrizo is now positioned to change its risk profile on its exploration program to be more aggressive in pursuing prospects with higher reserve potential.

In addition to the upside potential in its exploration drilling program, Carrizo continues to build value through adding to its leasehold position. In the Barnett Shale, the net acreage position has increased from 30,717 net acres at the start of 2005 to 80,349 net acres as of this writing. We have also worked hard to identify emerging new plays where we can assemble ground floor acreage positions at a reasonable cost that can lead to the type of development potential we have in the Barnett in the Fort Worth Basin. From the start of 2005 through this writing, we have grown our acreage position in other shale plays from 10,000 to 170,000 net acres. This includes significant positions in the Barnett/Woodford Shale in West Texas, the Fayetteville Shale in Arkansas, the Floyd Shale in Mississippi/Alabama and the New Albany Shale in Kentucky. We will not likely initiate significant Carrizo operated drilling operations in any of these areas during 2006 but will participate in third party operated wells.