The Company has continued to increase the acreage holdings in several new resource plays throughout North America. We continue acquiring acreage based on thorough analysis of geologic structure, thickness, thermal maturation, drilling depth, acreage availability, engineering, and infrastructure.

Carrizo has acquired 54,000 net acres in the West Texas Barnett/Woodford Shale project. The thickness of the Barnett ranges from 250' to 600' and is 6,500' to I 1,500' deep. Geochemical studies indicate that these shales are thermally mature.

The Arkansas Fayetteville Shale play is rapidly developing with other operators having drilled over 100 producing shale gas wells. Carrizo is acquiring acreage where the Fayetteville is 100' to 350' thick and 2,000' to 8,000' deep. Recent public studies clearly indicate that the Fayetteville interval is thermally mature. Although leasing is extremely competitive, we have been able to acquire 8,000 net acres.

A new resource project is the Floyd Shale in the Black Warrior Basin located on the Mississippi/Alabama border. Our studies indicate that the thermal maturation is indicative of a gas generative shale. The thickness of the Floyd Shale ranges from 80' to 165' at a depth of 6,500' to 10,000'. Carrizo has successfully acquired 91,000 net acres in this resource project where six wells drilled by industry are beginning to evaluate the commerciality of the play.

The New Albany Shale of Kentucky and Illinois has become very active with many wells being drilled in this historically productive shale interval. The thermally mature shale is found at a depth of 1,500' to 4,000' and ranges in thickness between 120' and 400' feet. Carrizo's ongoing lease acquisition program has resulted in 17,000 net acres.

The total acreage position that Carrizo currently holds in these expanding resource plays is 170,000 net acres. This substantial, constantly growing acreage position will provide ample opportunity for the Company to continue its balanced growth into the future. Active evaluation of these projects will continue with seismic analysis in preparation for drilling evaluation wells.