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. |