We
intend to satisfy the requirement under Item 5.05 of Form 8-K to disclose any
amendments to our Code of Ethics and any waiver from a provision of our Code of
Ethics by posting such information in our Corporate Governance section of our
website at www.carrizo.cc. Item 1A. Risk Factors Natural
gas and oil drilling is a speculative activity and involves numerous risks and
substantial and uncertain costs that could adversely affect us. Our
success will be largely dependent upon the success of our drilling program. Drilling
for natural gas and oil involves numerous risks, including the risk that no commercially
productive natural gas or oil reservoirs will be discovered. The cost of drilling,
completing and operating wells is substantial and uncertain, and drilling operations
may be curtailed, delayed or canceled as a result of a variety of factors beyond
our control, including: - unexpected or adverse drilling
conditions;
- elevated pressure or irregularities in geologic
formations;
- equipment failures or accidents;
- adverse
weather conditions;
- compliance with governmental requirements;
and
- shortages or delays in the availability of drilling
rigs, crews and equipment.
Because we identify
the areas desirable for drilling from 3-D seismic data covering large areas, we
may not seek to acquire an option or lease rights until after the seismic data
is analyzed or until the drilling locations are also identified; in those cases,
we may not be permitted to lease, drill or produce natural gas or oil from those
locations. Even if drilled, our completed wells may
not produce reserves of natural gas or oil that are economically viable or that
meet our earlier estimates of economically recoverable reserves. Our overall drilling
success rate or our drilling success rate for activity within a particular project
area may decline. Unsuccessful drilling activities could result in a significant
decline in our production and revenues and materially harm our operations and
financial condition by reducing our available cash and resources. Because of the
risks and uncertainties of our business, our future performance in exploration
and drilling may not be comparable to our historical performance described in
this Form 10-K/A. We may not adhere to our proposed drilling
schedule. Our final determination of whether to
drill any scheduled or budgeted wells will be dependent on a number of factors,
including: - the results of our exploration efforts and
the acquisition, review and analysis of the seismic data;
- the
availability of sufficient capital resources to us and the other participants
for the drilling of the prospects;
- the approval of the
prospects by the other participants after additional data has been compiled;
- economic
and industry conditions at the time of drilling, including prevailing and anticipated
prices for natural gas and oil and the availability and prices of drilling rigs
and crews; and
- the availability of leases and permits
on reasonable terms for the prospects.
Although
we have identified or budgeted for numerous drilling prospects, we may not be
able to lease or drill those prospects within our expected time frame or at all.
Wells that are currently part of our capital budget may be based on statistical
results of drilling activities in other 3-D project areas that we believe are
geologically similar rather than on analysis of seismic or other data | 
