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Reports Financial Results for Second Quarter 2003
HOUSTON, August 14, 2003 -- Carrizo Oil & Gas, Inc.
(Nasdaq: CRZO) today reported the Company's financial results for the second
quarter of 2003, which included the following highlights:
-- Revenues of $8.8 million, 30 percent above the second quarter
2002 level.
-- Net Income of $2.0 million before Dividends and Accretion of Discount
on Preferred Stock, 82 percent above the second quarter 2002 level.
-- EBITDA of $5.7 million or $0.40 per basic share, 31 percent above the
second quarter 2002 level of $4.3 million.
Revenues for
the quarter ended June 30, 2003 were $8.8 million as compared to
$6.8 million during the quarter ended June 30, 2002. Production
volumes during the quarter ended June 30, 2003 were 1,684 MMcfe,
or 18.5 MMcfe per day, as compared to 1,877 MMcfe, or 20.6 MMcfe
per day, during the second quarter of 2002. This lower production
is largely due to mechanical difficulties on the Delta Farms #1
and production delays on the Pauline Huebner #2 due to testing and
the Hankamer #1 due to delays in acquiring a pipeline right-of-way.
All these matters have been resolved and the estimated daily production
has been 22 MMcfe per day since early July. Carrizo's average oil
sales price increased 16 percent to $28.23 per barrel from $24.35
per barrel a year ago, and the Company's average natural gas sales
price increased 65 percent to $5.64 per Mcf from $3.42 per Mcf during
the second quarter of 2002. The above prices include the effects
of hedging activities. The Company reported net income available to common shares (after dividends and accretion of discount on preferred stock) of $1.8 million, or $0.13 and $0.11 per basic and diluted common share, respectively, for the quarter ended June 30, 2003, as compared to $0.9 million, or $0.06 and $0.06 per basic and diluted common share, respectively, for the same quarter during 2002. Net income available to common shares for the quarter ended June 30, 2003 was net of deferred federal income tax expense of $1.1 million, as compared to $0.6 million of deferred federal income tax expense during the quarter ended June 30, 2002. EBITDA during the second quarter of 2003 was $5.68 million, or $0.40 and $0.34 per basic and diluted common share, respectively, as compared to $4.34 million, or $0.31 and $0.25 per basic and diluted common share, respectively, during the second quarter of 2002. The increase in EBITDA was due mainly to the increase in revenues partially offset by higher lease operating expenses. Oil and gas operating expenses, including severance taxes, were $1.76 million during the quarter ended June 30, 2003, as compared to $1.34 million during the second quarter of 2002. On a per unit basis, oil and gas operating expenses increased to $1.05 per Mcfe from $0.71 per Mcfe during the second quarter of 2002 due primarily to higher severance taxes from increased oil and gas prices and non-recurring workover costs. DD&A expenses were unchanged at $2.6 million during our 2003 second quarter ($1.55 per Mcfe), as compared to $2.6 million ($1.40 per Mcfe) during the second quarter of 2002. The increase in the DD&A rate per Mcfe was due to the relative increase in the proved property cost base compared to the net proved reserve additions. General and administrative expenses ("G&A") increased to $1.27 million during the quarter ended June 30, 2003 from $1.14 million during the same quarter of 2002. The increase in G&A was due primarily to the addition of staff to handle increased drilling and production activities and higher insurance costs. Revenues for the first half of 2003 were $19.5 million, as compared to $10.8 million during the same period in 2002. Revenues increased due to significantly higher oil and gas prices than those prevailing in 2002. The average oil and natural gas prices received increased by 26 percent and 88 percent, respectively, in combination with a 10 percent increase in production levels. Production volumes during the six months ended June 30, 2003 were 3,622 MMcfe as compared to 3,295 MMcfe during the first half of 2002. For the six months, Carrizo's average natural gas sales price increased to $5.78 per Mcf from $3.08 per Mcf a year ago. The Company's average oil sales price increased to $29.04 per barrel from $22.97 per barrel during the first half of 2002. The above prices include the effects of hedging activities. The Company reported net income available to common shares of $4.4 million, or $0.31 and $0.27 per basic and diluted common share, respectively, for the six months ended June 30, 2003, as compared to net income available to common shares of $1.0 million, or $0.07 and $0.07 per basic and diluted common share, respectively, for the same period during 2002. The first half 2003 results are net of $2.7 of deferred federal income tax expense, as compared to $0.7 million of deferred federal income tax expense during the first half of 2002. EBITDA during the first six months of 2003 was $13.23 million, or $0.93 and $0.80 per basic and diluted common share, respectively, as compared to $6.58 million, or $0.47 and $0.39 per basic and diluted common share, respectively, during the first half of 2002. EBITDA increased primarily as a result of higher revenues. Oil and gas operating expenses, including severance taxes, increased to $3.48 million during the six months ended June 30, 2003, as compared to $2.35 million in the first half of 2002 primarily as a result of higher severance taxes from increased oil and gas prices, non-recurring workover costs and the higher cost of operating an increased number of wells. On a per unit basis, oil and gas operating expenses increased to $0.96 per Mcfe from $0.71 per Mcfe during the first half of 2002. DD&A expenses were $5.64 million during the six months ended June 30, 2003 ($1.56 per Mcfe) as compared to $4.61 million ($1.40 per Mcfe) during the first half of 2002. The increase in DD&A was due to increased production levels and additions to the proved property cost base. G&A increased to $2.65 million during the six months ended June 30, 2003 from $2.06 million during the same period of 2002. On a per unit basis, G&A expenses increased to $0.73 per Mcfe during the first half of 2003, as compared to $0.63 per Mcfe during the same period during 2002. The increase in G&A expense was due primarily to the addition of staff to handle increased drilling and production activities and higher insurance costs. "The second quarter of 2003 was very successful for Carrizo," commented S.P. Johnson IV, Carrizo's President and Chief Executive Officer. "Despite the lower average production in the second quarter of 2003 due to the reasons discussed above, the drilling success in the second quarter has significantly improved our daily production in early July. The successful drilling of all 12 gross exploratory wells, in the Company's core areas in South Texas and Louisiana, that Carrizo participated in during the second quarter has already raised the Company's estimated daily production to 22 MMcfe per day. This is higher than the 21.6 MMcfe per day average of the first quarter of 2003 or the 18.5 MMcfe per day average of the second quarter of 2003. An addition to this daily rate should come from the Carrizo operated "Beachhouse #1" well in Chambers County, Texas which is currently being completed and should be placed on production by next week. Carrizo owns a 28.8 percent working interest in this well. "Carrizo is currently participating in the drilling of six exploratory wells, three of which are considered by the Company to have high impact potential. The wells are located in Goliad County, Texas, St. Mary Parish, Louisiana and Terrebonne Parish, Louisiana and all three wells are expected to reach total depth in September. "We are very pleased with the continued success of our geological team which has developed numerous prospects from the new seismic data that Carrizo has acquired in the past 12 months. This acquisition of an additional 2,500 square miles of seismic data in our core areas has greatly increased our ability to add to our already substantial inventory of high quality prospects for future drilling. "We are also pleased to announce that Paul F. Boling has joined Carrizo as Vice President and Chief Financial Officer. Paul has over 22 years of financial and managerial experience in the oil and gas industry, serving most recently as Vice President of Finance for Cabot Oil & Gas Corporation in 2001. Paul is a CPA and holds a B.B.A. degree from Baylor University. He replaces Frank A. Wojtek who has left Carrizo to pursue other interests. Frank's contribution to the success of Carrizo since its inception in 1993 has been invaluable and we wish him continued success in his future endeavors. He will continue to be a Director and shareholder of the Company." Carrizo Oil & Gas, Inc., is a Houston-based energy company engaged in the exploration, development, exploitation and production of oil and natural gas in proven onshore trends primarily along the Texas and Louisiana Gulf Coast regions. Carrizo controls significant prospective acreage blocks and utilizes advanced 3-D seismic techniques to identify potential oil and gas reserves and drilling opportunities. Statements in this news release, including but not limited to those relating to the Company's or management's intentions, beliefs, expectations, hopes, projections, assessment of risks, estimations, plans or predictions for the future including potential effects or timing, expected completion and commencement of production of the Beachhouse #1 well, expected potential and timing of completion of the wells in Goliad County, St. Mary Parish and Terrebonne Parish and other statements that are not historical facts are forward looking statements that are based on current expectations. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that these expectations will prove correct. Important factors that could cause actual results to differ materially from those in the forward looking statements include the results and dependence on exploratory drilling activities, operating risks, oil and gas price levels, land issues, availability of equipment, weather and other risks described in the Company's Form 10-K for the year ended December 31, 2002 and its other filings with the Securities and Exchange Commission. To Present at the Oil & Gas Conference In Denver HOUSTON, August 4, 2003 -- Carrizo Oil & Gas, Inc. (Nasdaq: CRZO) will make a presentation at The Oil & Gas Conference in Denver at 3:30 PM MDT on Monday, August 4, 2003. A webcast of the presentation can be viewed by accessing the Company website, www.carrizo.cc, clicking on "Links" and then clicking on "The Oil & Gas Conference Webcast". The presentation will be webcast beginning at 8:00 AM EDT on Tuesday, August 5, 2003. Carrizo Oil & Gas, Inc., is a Houston-based energy company actively engaged in the exploration, development, exploitation and production of oil and natural gas in proven onshore trends primarily along the Texas and Louisiana Gulf Coast regions. Carrizo controls significant prospective acreage blocks and utilizes advanced 3-D seismic techniques to identify potential oil and gas reserves and drilling opportunities. Announces
Second Quarter Production
HOUSTON, July
30, 2003 -- Carrizo Oil & Gas, Inc. (CRZO) today announced the operating
results for the second quarter of 2003. In the Company's core areas
in South Texas and Louisiana, the Company participated in the drilling
of 12 gross exploratory wells, all of which were successful, resulting
in a 100 percent apparent success rate for the quarter. Nine of these
successful wells have been completed, two wells are in the process
of being completed and a third well is currently under evaluation
for possible sidetrack. Drilling operations were underway on four
additional wells at the end of the quarter. Since the beginning of
the year, Carrizo has now drilled 16 wells, 14 of which have been
successful.
Production during the second quarter of 2003 was estimated to be
1.66 Bcfe, or 12 percent below the 1.88 Bcfe production in the second
quarter of 2002. The second quarter 2003 production decrease was
largely due to mechanical difficulties on the Delta Farms #1 and
production delays on both the Pauline Huebner #2 due to testing
and the Hankamer #1 due to delays in acquiring the pipeline right-of-way.
All these matters have been resolved, and the estimated daily production
has been 22 MMcfe per day since early July (excluding Carrizo's
share of production from the Bobcat wells, approximately 400 Mcfed,
contributed in its investment in Pinnacle Gas Resources, Inc. in
June 2003) as compared to 18.2 MMcfe per day averaged in the second
quarter of 2003.
Production during the first half of 2003 was estimated at 3.6 Bcfe,
or 9 percent above the 3.3 Bcfe of production in the first half
of 2002.
Natural gas comprised 59 percent of second quarter 2003 production.
The Company estimates that second quarter 2003 sales prices averaged
approximately $5.47 per Mcf and $26.33 per barrel. These prices
include the effects of hedging activities, which resulted in a reduction
of the realized price of natural gas sold by $0.28 per Mcf and the
realized price of oil sold by $1.74 per barrel. The oil sales price
reflects the large volume of condensate production relative to total
oil production.
Operating highlights during the second quarter of 2003 included
the following:
-- The "Beachhouse #1" well in Chambers County, Texas reached
total depth on June 25, 2003 and logged approximately 67 feet of
apparent net pay in the lower Vicksburg section at approximately
11,500 feet. The well is expected to be completed and turned online
in mid to late August. The Company is operator and owns a 28.8 percent
working interest in the well.
-- The "Espree #1" well in Liberty County, Texas reached total
depth on May 22, 2003 and logged pay in multiple zones. The Company
is operator and owns a 46.3 percent working interest. The Espree
#1 commenced production on June 27, 2003 at a rate of approximately
5,500 Mcf and 160 barrels of condensate (6,460 Mcfe) per day.
-- The "Pauline Huebner A-382 #3" well ("Huebner #3)" in the Company's
Providence Field in Matagorda County, Texas, reached total depth
on April 20, 2003 and logged approximately 54 feet of apparent net
pay in two potential pay intervals. Carrizo operates the wells and
owns a 39.75 percent working interest. The lower interval averaged
2,500 Mcfe per day for the first month of production but began producing
high water rates. The lower zone has been shut-in and the upper
zone is now producing at a rate of approximately 400 barrels of
oil and 1,000 Mcf (3,400 Mcfe) per day. The lower zone is expected
to be returned to production at a later date.
-- The Delta Farms #1 well (Carrizo's working interest is 40 percent)
began producing sand and was curtailed to a rate of 4,200 Mcfed.
A successful workover completed in June resulted in the rate being
increased to 8,200 Mcfe per day. The well was off production for
27 days during the workover operations.
"Our recent drilling success has been outstanding as evidenced
by two more successful Huebner wells in Matagorda County, the Espree
well in Liberty County and the Beachhouse well in Chambers County",
commented S.P. Johnson IV, Carrizo's President and Chief Executive
Officer. The quarterly drop in production was due to extended testing
of three new wells to better quantify reserve potential in every
pay zone, pipeline delays at the Hankamer well in April and the
workover on the Delta Farms #1. This workover was particularly rewarding
since pressure data indicates that we found additional reserves
in the same zone during the workover.
"We expect to post excellent third quarter production volumes based
on the high current rate of 22 MMcfed combined with additions planned
from the Beachhouse completion and a proposed recompletion on the
Huebner #2. By dually completing the Huebner #2 we can add one of
the remaining two uncompleted zones to the current 3,000 Mcfe per
day interval. Four additional wells are currently drilling; two
deep Wilcox wells in South Texas (15.5 percent and 38.5 percent
working interest) and two deep high impact wells in South Louisiana
(20 percent and 35.5 percent working interest)." Carrizo Oil & Gas,
Inc., is a Houston-based energy company engaged in the exploration,
development, exploitation and production of oil and natural gas
in proven onshore trends primarily along the Texas and Louisiana
Gulf Coast regions. Carrizo controls significant prospective acreage
blocks and utilizes advanced 3-D seismic techniques to identify
potential oil and gas reserves and drilling opportunities.
Statements in this news release, including but not limited to those
relating to the Company's or management's intentions, beliefs, expectations,
hopes, projections, assessment of risks, estimations, plans or predictions
for the future including potential effects or timing, timing of
completion of the Beachhouse #1 well, the return to production of
the lower zone of the Huebner #3 well, projections of third quarter
production volumes and other statements that are not historical
facts are forward looking statements that are based on current expectations.
Although the Company believes that its expectations are based on
reasonable assumptions, it can give no assurance that these expectations
will prove correct. Important factors that could cause actual results
to differ materially from those in the forward looking statements
include the results and dependence on exploratory drilling activities,
operating risks, oil and gas price levels, land issues, availability
of equipment, weather and other risks described in the Company's
Form 10-K for the year ended December 31, 2002 and its other filings
with the Securities and Exchange Commission.
Announces Closing of Coalbed Methane Property Transaction
HOUSTON, June
25, 2003 -- Carrizo Oil & Gas, Inc. (Nasdaq: CRZO) today announced
that its wholly-owned subsidiary CCBM, Inc. ("CCBM") has contributed
its 50 percent interest in a portion of its coalbed methane properties
to a newly formed entity, Pinnacle Gas Resources, Inc. ("Pinnacle")
in exchange for common stock of Pinnacle. Simultaneous with the asset
contribution by CCBM, Rocky Mountain Gas, Inc. ("RMG"), a subsidiary
of U.S. Energy Corp. (Nasdaq: USEG) and Crested Corp (BB:CBAG) also
contributed its 50 percent interest in the same coalbed methane properties
to Pinnacle, and Global Energy Partners and other affiliates of Credit
Suisse First Boston Private Equity ("CSFB") provided equity funding
to Pinnacle to develop the assets and acquire additional coalbed methane
properties in Wyoming and Montana.
Immediately following the initial capitalization, Pinnacle closed
on an acquisition of additional coalbed methane properties from
Gastar Exploration, Ltd. (TSX Venture Exchange: YGA) with proceeds
from the CSFB financing. The acquisition included a 50 percent approximate
working interest in existing producing and non-producing leases
and approximately 38,000 gross acres prospective for coalbed methane
development. The majority of the leases are either part of or located
adjacent to the "Bobcat" property which was contributed to Pinnacle
by RMG and CCBM. Terms of the acquisition included upfront payments
totaling approximately $7.1 million and an agreement by Pinnacle
to fund up to $14.5 million of future drilling development costs
on the Gastar acreage prior to December 31, 2005.
At closing, CSFB provided approximately $18.0 million of gross
funding to Pinnacle in return for preferred stock, common stock
and warrants. CSFB has agreed to provide, under certain circumstances,
up to an additional $12.0 million of gross funding to Pinnacle,
to fund future drilling, development and acquisitions.
The properties contributed by CCBM to Pinnacle included all of
CCBM's interest in the leases and production in the Clearmont, Kirby,
Arvada and Bobcat project areas, having a book value of approximately
$7.5 million. In exchange for the contribution of these assets,
CCBM received 37.5 percent of the common stock of Pinnacle as of
closing. On a fully-diluted basis, assuming the additional $12 million
of funding is provided by CSFB, CCBM will own a 16.67 percent interest
in Pinnacle with options to increase its fully- diluted ownership
to 22.73 percent. CCBM retained its ownership in the Castle Rock
project area in Montana and the Oyster Ridge project area in Wyoming
which contain undeveloped leasehold prospective for coalbed methane
covering approximately 33,000 acres net to CCBM.
Commenting on the transaction with Pinnacle, S.P. Johnson IV, President
and Chief Executive Officer of Carrizo Oil & Gas, Inc. stated, "We
believe that CCBM's participation in the formation and funding of
Pinnacle is a very positive step towards the development of the
full potential of Carrizo's investment in coalbed methane. As of
closing, Pinnacle's assets include over 128,000 gross acres prospective
for coalbed methane development in the Powder River Basin in Wyoming
and Montana, over 10 Bcf of net estimated proved reserves and a
significant working capital position. This substantial coalbed methane
position, along with the future CSFB funding, should allow for rapid
development and growth at a time when realized gas prices are expected
to remain strong for the foreseeable future."
Carrizo Oil & Gas, Inc., is a Houston-based energy company actively
engaged in the exploration, development, exploitation and production
of oil and natural gas primarily in proven onshore trends along
the Texas and Louisiana Gulf Coast regions. Carrizo controls significant
prospective acreage blocks and utilizes advanced 3-D seismic techniques
to identify potential oil and gas reserves and drilling opportunities.
Statements in this news release, including but not limited to those
relating to the Company's or management's intentions, beliefs, expectations,
hopes, projections, assessment of risks, estimations, plans or predictions
for the future including potential effects or timing, Pinnacle's
future acquisition and development plans, the potential of Carrizo's
investment in coalbed methane, expectations for Pinnacle's rapid
development and growth, expected strong gas prices for the foreseeable
future and other statements that are not historical facts are forward
looking statements that are based on current expectations. Although
the Company believes that its expectations are based on reasonable
assumptions, it can give no assurance that these expectations will
prove correct. Important factors that could cause actual results
to differ materially from those in the forward looking statements
include the results and dependence on exploratory drilling activities,
operating risks, oil and gas price levels, land issues, availability
of equipment, weather and other risks described in the Company's
Form 10-K for the year ended December 31, 2002 and its other filings
with the Securities and Exchange Commission. Steven A. Webster,
Chairman of the Board of the Company, is also a managing director
of CSFB.
Announces First Quarter 2003 Financial Results
HOUSTON, May 1,
2003 -- Carrizo Oil & Gas, Inc. (Nasdaq: CRZO) today reported the
Company's financial results for the first quarter of 2003, which included
the following highlights:
-- Production of 1.94 Bcfe, an increase of 37 percent over first
quarter 2002.
-- Record quarterly revenue of $10.7 million.
-- Net Income of $2.8 million.
-- Record Earnings before Interest, Taxes, Depletion, Depreciation
and Amortization ("EBITDA"), as described in the table below, of
$7.5 million.
Revenues for the three months ended March 31, 2003 increased 165
percent to $10.7 million as compared to $4.0 million during the
quarter ended March 31, 2002. The increase in revenues was driven
primarily by a 37 percent increase in production combined with higher
prevailing oil and natural gas prices. Production volumes during
the three months ended March 31, 2003 were 1.94 Bcfe as compared
to 1.42 Bcfe during the first quarter of 2002. Carrizo's average
oil sales price increased 45 percent to $29.74 per barrel from $20.50
per barrel during the first quarter of 2002, while the average natural
gas sales price increased 121 percent to $5.91 per Mcf from $2.67
per Mcf. The above prices include the cash effect of hedging activities.
The Company reported net income available to common shares of $2.7
million, or $0.19 and $0.16 per basic and diluted share, respectively,
for the three months ended March 31, 2003, as compared to $0.1 million,
or $0.00 and $0.00 per basic and diluted share, respectively, for
the same quarter during 2002. Net income included a charge of $128,000
for the cumulative effect of change in accounting principle related
to the implementation of SFAS No. 143, "Accounting for Asset Retirement
Obligations" and was net of dividends and accretion of discount
on preferred stock ("Preferred Stock Dividends") of $181,000. EBITDA
during the first quarter of 2003 increased 238 percent to $7.5 million,
or $0.53 and $0.43 per basic and diluted share, respectively, as
compared to $2.2 million, or $0.16 and $0.14 per basic and diluted
share, respectively, during the first quarter of 2002. EBITDA increased
eight percent over fourth quarter 2002 levels.
Oil and gas operating expenses, including production taxes, increased
to $1.7 million during the three months ended March 31, 2003 as
compared to $1.0 million during the first quarter of 2002, due to
higher severance taxes as a result of higher oil and gas prices
and the cost of operating an increased number of wells. On a per
unit basis, excluding severance taxes, oil and gas operating expenses
decreased to $0.48 per Mcfe from $0.52 per Mcfe during the first
quarter of 2002.
Depreciation, depletion and amortization expenses ("DD&A") were
$3.0 million during the three months ended March 31, 2003 ($1.57
per Mcfe) as compared to $2.0 million ($1.39 per Mcfe) during the
first quarter of 2002. The increase in DD&A was due to higher production
levels as well as an increase in the DD&A rate primarily due to
additions to the proved property cost base.
General and administrative expenses ("G&A") increased to $1.4 million
during the three months ended March 31, 2003 from $0.9 million during
the same quarter of 2002. The increase in G&A was due primarily
to the addition of staff to handle increased drilling activities,
higher compensation costs and higher insurance costs. On a per unit
basis, G&A increased to $0.71 per Mcfe during first quarter 2003,
as compared to $0.65 per Mcfe during first quarter 2002.
"The first quarter 2003 financial results were record breaking
in terms of revenue and EBITDA," commented Frank A. Wojtek, Carrizo's
Vice President and Chief Financial Officer. "First quarter production
averaged over 21.5 MMcfe per day, which, combined with strong commodity
prices, allowed the Company to achieve quarterly revenues in excess
of $10 million for the first time in Company history. At current
prices and anticipated production levels, Carrizo is on a pace to
exceed $30 million of EBITDA during 2003, in excess of $2.00 per
common share outstanding."
"We are now accelerating the pace of reinvestment of this cash
flow into the drilling and further development of our high potential
prospect inventory, which we expect will contribute to future production
levels, cash flow, reserve growth, and increased shareholder value,"
commented S.P. Johnson IV, Carrizo's President and Chief Executive
Officer. "We presently have two rigs drilling Carrizo-operated wells
in Matagorda County and in Liberty County, Texas and expect to spud
two additional Company-operated wells shortly. Completion operations
are also under way on three recently drilled wells, including two
successful wells in Matagorda County where we are performing the
completions in stages in light of the multiple pay zones encountered
in the wells."
Carrizo Oil & Gas, Inc., is a Houston-based energy company actively
engaged in the exploration, development, exploitation and production
of oil and natural gas primarily in proven onshore trends along
the Texas and Louisiana Gulf Coast regions. Carrizo controls significant
prospective acreage blocks and utilizes advanced 3-D seismic techniques
to identify potential oil and gas reserves and drilling opportunities.
Statements in this news release, including but not limited to those
relating to the Company's or management's intentions, beliefs, expectations,
hopes, projections, assessment of risks, estimations, plans or predictions
for the future including potential effects or timing, expected 2003
levels of EBITDA, acceleration of reinvestment of cash flow into
the drilling and further development of the Company's prospect inventory,
including the potential of such prospect inventory and the expected
contribution to future production levels, cash flow, reserve growth
and shareholder value, the expected timing of drilling of additional
wells and other statements that are not historical facts are forward
looking statements that are based on current expectations. Although
the Company believes that its expectations are based on reasonable
assumptions, it can give no assurance that these expectations will
prove correct. Important factors that could cause actual results
to differ materially from those in the forward looking statements
include the results and dependence on exploratory drilling activities,
operating risks, oil and gas price levels, land issues, availability
of equipment, weather and other risks described in the Company's
Form 10-K for the year ended December 31, 2002 and its other filings
with the Securities and Exchange Commission.
To Make Presentation at IPAA Symposium in New York
HOUSTON, April
25, 2003 -- Carrizo Oil & Gas, Inc. (Nasdaq: CRZO) will make a presentation
at the Independent Petroleum Association of America ("IPAA") Oil &
Gas Investment Symposium in New York at 2:10 PM EDT on Tuesday, April
29, 2003.
A live webcast of the presentation can be viewed by accessing the
Company website, www.carrizo.cc Carrizo Oil & Gas, Inc., is a Houston-based energy company actively
engaged in the exploration, development, exploitation and production
of oil and natural gas in proven onshore trends primarily along
the Texas and Louisiana Gulf Coast regions. Carrizo controls significant
prospective acreage blocks and utilizes advanced 3-D seismic techniques
to identify potential oil and gas reserves and drilling opportunities.
Updates
First Quarter 2003 Operations
HOUSTON, April
24, 2003 -- Carrizo Oil & Gas, Inc. (Nasdaq: CRZO) today announced
the operating results for the first quarter of 2003. In the Company's
core areas in South Texas and Louisiana, the Company participated
in the drilling of four gross exploratory wells, two of which were
successful. Since March 31, 2003, four additional gross wells have
reached total depth, all of which were successful, resulting in a
75 percent apparent success rate year-to-date. As of the end of the
quarter, the two successful wells drilled in the first quarter and
one additional well drilled in the fourth quarter 2002 were in process
of being completed, or were awaiting pipeline hookup to commence production,
and drilling operations were underway on three additional wells.
Production during the first quarter of 2003 was estimated at 1.94
Bcfe, 37 percent higher than first quarter 2002. Approximately 57
percent of production was natural gas. The Company estimates that
first quarter 2003 sales prices, including the effect of hedging
activities, averaged approximately $5.99 per Mcf and $29.32 per
barrel, which should result in record revenues for the quarter.
The natural gas sales price was negatively affected $0.63 per Mcf
and the oil sales price was negatively affected $3.64 per barrel
by hedging activities. The oil sales price reflects the large volume
of condensate production relative to total oil production. The average
gas price reflects lower prices received for the Company's coalbed
methane production in Wyoming, which averaged 479 Mcf per day and
a sales price of $3.34 per Mcf during the quarter.
Operating highlights during the first quarter of 2003 included
the following:
-- The Company continued its successful exploratory drilling program
in the Matagorda Project Area in Matagorda County, Texas. In January
2003, the fourth successful well drilled in the Providence Field,
the "Matthes-Huebner #1", commenced production at a gross rate of
approximately 2,518 barrels of oil and 7,700 Mcf of gas (22,800
Mcfe) per day. Carrizo owns a 32.2125 percent before payout working
interest in the well. Gross production from the four producing wells
in the field averaged approximately 5,300 barrels of oil and 17,250
Mcf of gas (49,000 Mcfe) per day during the first quarter of 2003,
or approximately 12,000 Mcfe per day net to Carrizo's interest.
On March 9 and March 11, 2003, the Company, as operator, spud
the "Pauline-Huebner A-382 #2" and "Pauline-Huebner A-382 #3" wells,
respectively. The Pauline-Huebner A-382 #2 well targeted previously
untested potential pay horizons structurally downthrown to the Providence
Field and reached total depth of 12,500 feet on April 7, 2003. The
well logs indicate approximately 74 feet of apparent net pay in
three potential pay intervals. The Company's working interest ranges
from 46.5 to 52.5 percent in the primary well objectives, depending
upon the actual depth of the zone to be produced. The Company has
completed the construction of the production facilities and expects
to begin perforating and testing the well by the end of this week.
The Pauline-Huebner A-382 #3 well was drilled as an offset well
to the Matthes-Huebner #1 in the Providence Field and reached total
depth on April 20, 2003. The well logs indicate approximately 57
feet of apparent net pay in two potential pay intervals. Carrizo
owns a 39.75 percent working interest in the well. Completion operations
are underway and the Company expects to be able to test the well
in the next seven to ten days.
On April 15, 2003, the Company, as operator, spud an additional
12,550 foot test well in the Project Area, targeting another untested
downthrown structure believed to be along the same major fault as
the Pauline-Huebner A-382 #2 well.
-- In the Liberty Project Area in Liberty County, Texas, the Company
resolved the remaining issues relating to the connection of the
Hankamer #1 well to pipeline infrastructure and the well commenced
production in early April from the Cook Mountain interval at a rate
of 525 barrels of oil and 7,000 Mcf of gas (10,150 Mcfe) per day.
Carrizo is the operator of the well and owns a 40 percent working
interest.
On April 21, 2003, the Company, as operator, spud an additional
10,500 foot test well in the Project Area that also targets the
Cook Mountain interval.
"Although our 2003 drilling program got off to a somewhat slower
pace than we would have liked, we were able to accelerate the pace
later in the quarter with the simultaneous drilling of our two latest
successful wells in Matagorda County," commented S.P. Johnson IV,
Carrizo's President and Chief Executive Officer. "We expect to test
both of these wells shortly and expect to be able to put both of
these wells on production by early May. Based upon the well logs,
we anticipate that the wells should exhibit flow rate characteristics
similar to our other recent high rate wells in the area, thus significantly
impacting anticipated second quarter 2003 production levels. Carrizo
currently has two rigs drilling in Liberty and Matagorda Counties
and we expect to spud two additional wells shortly, including a
13,500 foot Wilcox test well in Live Oak County, Texas."
Carrizo Oil & Gas, Inc., is a Houston-based energy company engaged
in the exploration, development, exploitation and production of
oil and natural gas in proven onshore trends primarily along the
Texas and Louisiana Gulf Coast regions. Carrizo controls significant
prospective acreage blocks and utilizes advanced 3-D seismic techniques
to identify potential oil and gas reserves and drilling opportunities.
Statements in this news release, including but not limited to those
relating to the results, potential effects, risk profiles, schedule,
prospects or estimates for current or future drilling or wells,
expected timing of completing and testing the Pauline-Huebner A-382
#2 and #3 wells, the number of potential pay zones in the wells,
anticipated flow rates and the timing of commencement of production
from these wells, the impact of such wells on anticipated second
quarter production levels, expected timing of spudding or drilling
additional wells, potential success of wells believed to be located
along certain faults and other statements that are not historical
facts are forward looking statements that are based on current expectations.
Although the Company believes that its expectations are based on
reasonable assumptions, it can give no assurance that these expectations
will prove correct. Important factors that could cause actual results
to differ materially from those in the forward looking statements
include the results and dependence on exploratory drilling activities,
operating risks, oil and gas price levels, land issues, availability
of equipment, weather and other risks described in the Company's
Form 10-K for the year ended December 31, 2002 and its other filings
with the Securities and Exchange Commission.
Announces
Fourth Quarter and Full Year 2002 Financial Results
HOUSTON, March 18, 2003 -- Carrizo Oil & Gas, Inc. (Nasdaq: CRZO)
today reported the Company's financial results for the fourth quarter
and year ended December 31, 2002.
Fourth Quarter 2002 Results --
The fourth quarter 2002 results included the following highlights:
-- Record production of 2.1 Bcfe, an increase of 80 percent over
fourth quarter 2001. Revenues for the three months ended December 31, 2002 increased
118 percent to $9.2 million as compared to $4.2 million during the
quarter ended December 31, 2001. The increased level of revenues
was driven primarily by an 80 percent increase in production combined
with higher prevailing oil and natural gas prices. Production volumes
during the three months ended December 31, 2002 reached a record
level of 2.1 Bcfe as compared to 1.2 Bcfe during the fourth quarter
of 2001 and increased 16 percent over third quarter 2002 levels.
Carrizo's average oil sales price increased 62 percent to $27.93
per barrel from $17.29 per barrel during the fourth quarter of 2001,
while the average natural gas sales price increased 12 percent to
$4.24 per Mcf from $3.77 per Mcf. The above prices include the cash
effect of hedging activities.
Operating Cash Flow (cash flow from operating activities before
changes in assets and liabilities) during the fourth quarter of
2002 increased to $6.8 million, or $0.48 per basic share, as compared
to $2.6 million, or $0.18 per basic share, during the fourth quarter
of 2001. After dividends and accretion of discount on preferred
stock ("Preferred Stock Dividends"), the Company reported net income
of $2.2 million, or $0.16 and $0.14 per basic and diluted share,
respectively, for the three months ended December 31, 2002, as compared
to $0.2 million, or $0.02 and $0.01 per basic and diluted share,
respectively, for the same quarter during 2001. The fourth quarter
2001 results included a non-cash charge of $759,000 ($0.05 per basic
share) for a valuation allowance relating to certain hedge arrangements.
Oil and gas operating expenses, including production taxes, increased
to $1.2 million during the three months ended December 31, 2002
as compared to $0.8 million during the fourth quarter of 2001, due
to higher severance taxes as a result of higher oil and gas prices
and the cost of operating an increased number of wells. On a per
unit basis, excluding severance taxes, oil and gas operating expenses
decreased to $0.43 per Mcfe from $0.48 per Mcfe during the fourth
quarter of 2001.
Depreciation, depletion and amortization expenses ("DD&A") were
$3.2 million during the three months ended December 31, 2002 ($1.55
per Mcfe) as compared to $1.5 million ($1.29 per Mcfe) during the
fourth quarter of 2001. The increase in DD&A was due to higher production
levels as well as an increase in the DD&A rate primarily due to
additions to the proved property cost base.
General and administrative expenses ("G&A") increased to $1.1 million
during the three months ended December 31, 2002 from $0.9 million
during the same quarter of 2001. The increase in G&A was due primarily
to the addition of staff to handle increased drilling activities
and higher insurance costs. On a per unit basis, G&A decreased to
$0.52 per Mcfe during fourth quarter 2002, as compared to $0.77
per Mcfe during fourth quarter 2001.
Results for the Year Ended December 31, 2002 --
The full year 2002 results included the following highlights:
-- Record production of 7.2 Bcfe, an increase of 34 percent over
2001. Production volumes during the year ended December 31, 2002 were
7.2 Bcfe as compared to 5.4 Bcfe during 2001. As a result of the
increase in production, revenues for the year ended December 31,
2002 increased to $26.8 million as compared to $26.2 million during
the year ended December 31, 2001 despite a 24 percent decrease in
the average sales price per Mcfe realized by the Company. The Company's
average natural gas sales price decreased 31 percent to $3.50 per
Mcf from $5.04 per Mcf during 2001, while the average oil sales
price increased three percent to $24.94 per barrel from $24.28 per
barrel a year ago. The above prices include the cash effect of hedging
activities.
Operating Cash Flow during the year ended December 31, 2002 was
$17.1 million, or $1.21 per basic share, as compared to $19.0 million,
or $1.35 per basic share, during the year ended December 31, 2001.
After Preferred Stock Dividends, the Company reported net income
of $4.2 million, or $0.30 and $0.26 per basic and diluted share,
respectively, for the year ended December 31, 2002, as compared
to $9.5 million, or $0.68 and $0.57 per basic and diluted share,
respectively, for 2001. Other income for the year ended December
31, 2001 included a gain on the sale of an investment of $3.9 million
offset by (1) a charge and related legal expenses of $1.4 million
in respect of the final settlement of litigation and (2) a non-cash
valuation allowance of $759,000 relating to certain hedge arrangements.
Oil and gas operating expenses, including production taxes, increased
to $4.9 million during the year ended December 31, 2002, as compared
to $4.1 million during 2001, primarily as a result of the cost of
operating an increased number of wells. On a per unit basis, excluding
production taxes, oil and gas operating expenses remained unchanged
at $0.48 per Mcfe in both 2002 and 2001. Excluding lifting costs
at the Camp Hill oil project (which averaged $14.99 per Boe or $2.50
per Mcfe), and severance taxes, oil and gas operating expenses were
$0.44 per Mcfe during the year ended December 31, 2002.
DD&A expenses were $10.6 million during year ended December 31,
2002 ($1.47 per Mcfe) as compared to $6.5 million ($1.20 per Mcfe)
during 2001. The increase in DD&A expense was due to higher production,
as well as an increase in the DD&A rate due to additions to the
proved property cost base.
G&A expenses increased to $4.1 million during the year ended December
31, 2002 from $3.3 million during the same period of 2001. The increase
in G&A was due primarily to the addition of staff to handle increased
drilling activities and higher insurance costs. On a per unit basis,
G&A decreased to $0.57 per Mcfe during 2002 as compared to $0.62
per Mcfe during 2001.
"The year 2002 was very successful for Carrizo resulting in another
year of solid financial results", commented S.P. Johnson IV, Carrizo's
President and Chief Executive Officer. "We were able to achieve
record annual production as a result of an 85% drilling success
rate and ended the year with a record quarterly level of production,
revenue and operating cash flow. For the year, we replaced 150 percent
of production, with year-end reserve levels reaching 63 Bcfe.
"Our drilling success on three high impact wells in the Matagorda
Project Area during 2002 made a significant contribution toward
the achievement of the increased 2002 production levels, as well
as contributing to increased production rates in first quarter 2003.
Drilling operations are now underway on two additional wells in
the area, including a follow-up well to the successful "Pauline
Huebner A-382 #1" well and another well targeting a previously untested
structure in the area. With the higher first quarter 2003 production
levels and recent improvement in oil and natural gas prices contributing
to increased cash flow levels, we are in an excellent position to
aggressively drill our high-grade exploration well inventory. Our
recent 3-D seismic acquisitions at year-end 2002 are also beginning
to generate additional drilling prospects that we expect to begin
drilling as early as the second quarter of 2003. We expect to participate
in as many as 28 gross wells during 2003, including several high
potential tests in Goliad, Matagorda and McMullen Counties in Texas
and Lafourche and Terrebonne Parishes in Louisiana. We are optimistic
that 2003 will be another excellent growth year for Carrizo."
Carrizo Oil & Gas, Inc., is a Houston-based energy company engaged
in the exploration, development, exploitation and production of
oil and natural gas primarily in proven onshore trends along the
Texas and Louisiana Gulf Coast regions. Carrizo controls significant
prospective acreage blocks and utilizes advanced 3-D seismic techniques
to identify potential oil and gas reserves and drilling opportunities.
Statements in this news release, including but not limited to those
relating to the results, potential, risk profiles, schedule, number,
prospects or estimates for current or future drilling of wells,
prospects for continued growth in 2003, higher first quarter 2003
production levels, improvement in oil and natural gas prices, increased
cash flow levels, high-grade drilling prospect inventory, expected
timing of drilling of additional prospects generated as a result
of recent 3-D seismic acquisitions at year-end 2002, expected number
of wells in which the Company participates in during 2003 and the
potential and locations thereof and other statements that are not
historical facts are forward looking statements that are based on
current expectations. Although the Company believes that its expectations
are based on reasonable assumptions, it can give no assurance that
these expectations will prove correct. Important factors that could
cause actual results to differ materially from those in the forward
looking statements include the results and dependence on exploratory
drilling activities, operating risks, oil and gas price levels,
land issues, availability of equipment, weather and other risks
described in the Company's Form 10-K for the year ended December
31, 2001 and its other filings with the Securities and Exchange
Commission.
Updates Fourth Quarter 2002 Operations
HOUSTON, January 27, 2003 -- Carrizo Oil & Gas, Inc. (NASDAQ:CRZO)
today announced the operating results for the fourth quarter of
2002. In the Company's core areas in South Texas and Louisiana,
the Company participated in the drilling of eight gross exploratory
wells, seven of which were successful, resulting in an 87.5 percent
apparent success rate for the quarter. As of the end of the quarter,
seven successful wells were in process of being completed, or were
awaiting pipeline hookup to commence production, and drilling operations
were underway on one additional well. During 2002, the Company participated
in the drilling of 20 gross wells in South Texas and Louisiana,
17 of which were successful, resulting in an 85 percent apparent
success rate for the year.
Production during the fourth quarter of 2002 was estimated at
2.12 Bcfe, 82 percent higher than fourth quarter 2001, 17 percent
higher than third quarter 2002 levels, and also the highest quarterly
level in Company history. Approximately 59 percent of production
was natural gas. The Company estimates that fourth quarter 2002
sales prices, including the effect of hedging activities, averaged
approximately $3.91 per Mcf and $26.37 per barrel. The natural gas
sales price was negatively affected $0.24 per Mcf and the oil sales
price was negatively affected $0.80 per barrel by hedging activities.
The oil sales price reflects the large volume of condensate production
relative to total oil production. For the year ended December 31,
2002, production was estimated at 7.2 Bcfe, an increase of 34 percent
over the 2001 production level, with 66 percent of production being
natural gas.
Operating highlights during the fourth quarter of 2002 included
the following:
-- The Company continued its drilling success in the Matagorda
Project Area in Matagorda County, Texas, with the "Matthes-Huebner
#1" well, which reached total depth of 12,500 feet on December 17,
2002 and logged approximately 60 feet of net pay in the Lower Frio
section. Carrizo owns a 32.2125 percent working interest in the
well, which was drilled as an offset to the field discovery well,
the "Staubach #1", and is the fourth successful well drilled to
date in the field, as well as the first well to have multiple pay
zones. The well commenced production in early January 2003 at a
rate of approximately 2,518 barrels of oil and 7,700 Mcf of natural
gas (22,800 Mcfe) per day. A previous well drilled in the field,
the "Pauline Huebner A-382 #1", which Carrizo operates and owns
a 45 percent working interest, commenced production in mid-November
2002 at a rate of approximately 1,800 barrels of oil and 5,000 Mcf
of natural gas (approximately 15,800 Mcfe) per day. The Company
expects to drill and operate at least two more wells in the area
during 2003, including another follow-up well in the field commencing
in the first quarter.
-- The Company made another discovery in the Liberty Project Area
in Liberty County, Texas with the "Hankamer #1" well which reached
total depth on October 4, 2002 and logged approximately 40 feet
of net pay in the Cook Mountain interval. Carrizo is the operator
of the well and owns a 40 percent working interest. The well was
perforated, fracture stimulated and tested at a gross rate of 10,490
Mcf of natural gas and 772 barrels of oil (15,122 Mcfe) per day
at 7,166 psi flowing tubing pressure. While efforts to put the well
online have been delayed due to flooding in the area and pipeline
issues, the Company is presently in process of installing production
facilities and expects the well to commence production in late February
or early March 2003. The Company expects to drill two or three additional
wells in the project area during 2003, including a well that spud
last week.
-- Significant progress has been made by the Company's wholly-owned
subsidiary, CCBM, Inc. with regard to its coalbed methane ("CBM")
operations in the Powder River Basin in northwestern Wyoming. At
the 1,940 gross acre "Bobcat" project, in which CCBM owns an average
working interest of approximately 28 percent, gross production has
reached a level of over 2,000 Mcf of gas per day, with wellhead
prices in excess of $3.00 per Mcf. Many of the 24 production wells
in the area are still in the dewatering stage and as such, production
is expected to increase in the months ahead. In addition to the
existing wells, the Company believes that there are numerous additional
potential drilling locations which could target the coal seams currently
being produced as well as three additional deeper prospective coal
seams.
At the "Clearmont" project, in which CCBM owns an average 50 percent
working interest, 33 wells have been drilled and completed to date,
including 19 wells currently on-pump in the dewatering stage of
development. As there are only a few other coalbed methane projects/wells
in the immediate vicinity, the dewatering process has taken longer
than originally estimated. All of the wells on pump are producing
small amounts of gas consistent with expectations given the current
development stage of the project. The gas gathering, compression
facilities and sales pipeline are in place, and depending upon the
progress of the dewatering process, commercial production could
commence later this year.
-- During the period from September 30, 2002 through December
31, 2002, the Company acquired (or obtained the right to acquire)
an additional 2,750 square miles of 3-D seismic data in its core
areas in the Texas and Louisiana Gulf Coast regions, including approximately
450 additional square miles of 3-D data adjoining the Matagorda
Project Area and 167 square miles of 3-D data adjoining the Liberty
Project Area. The additional data acquisitions during 2002 double
the amount of 3-D seismic data the Company owns in its core exploration
areas.
"Carrizo, through its high rate of drilling success and recent
high-impact wells, was again able to achieve a significant increase
in production during the latest quarter," commented S.P. Johnson
IV, Carrizo's President and Chief Executive Officer. "In addition
to other fourth quarter wells, the latest two high impact wells,
the 'Matthes-Huebner #1' in Matagorda County, which commenced production
in early January 2003, and the latest Liberty County well, the 'Hankamer
#1', are expected to make a significant contribution to 2003 production
rates. In 2003, we expect to continue our exploration focus in these
two areas utilizing recently acquired additional 3-D data, as well
as continuing our successful drilling program in the Cabeza Creek
Project Area in Goliad County. In this regard, the Company plans
to invest approximately $21 million for drilling and completion
costs during 2003, an increase of approximately 20 percent over
2002 levels. The Company also plans to invest an additional $2 million
for land/leasing costs and geologic and geophysical expenditures
during 2003. We will likely adjust the actual 2003 capital spending
level based upon actual operating results and cash flow."
Carrizo Oil & Gas, Inc., is a Houston-based energy company engaged
in the exploration, development, exploitation and production of
oil and natural gas in proven onshore trends primarily along the
Texas and Louisiana Gulf Coast regions. Carrizo controls significant
prospective acreage blocks and utilizes advanced 3-D seismic techniques
to identify potential oil and gas reserves and drilling opportunities.
Statements in this news release, including but not limited to
those relating to the results, potential effects, risk profiles,
schedule, prospects or estimates for current or future drilling
or wells, expected timing of commencement of production from the
Hankamer #1 well, the expected contribution of the Matthes-Huebner
#1 and Hankamer #1 wells to 2003 production rates, expected number
of additional wells to be drilled during 2003 in the Matagorda and
Liberty project areas and the timing thereof, expected increase
in production and the number of additional potential drilling locations
at the Bobcat CBM area, the potential and timing for commercial
production at the Clearmont CBM area, continued drilling success
in the Cabeza Creek Project Area, expected 2003 capital expenditure
levels, areas of focus and likely adjustment of actual 2003 spending
levels and other statements that are not historical facts are forward
looking statements that are based on current expectations. Although
the Company believes that its expectations are based on reasonable
assumptions, it can give no assurance that these expectations will
prove correct. Important factors that could cause actual results
to differ materially from those in the forward looking statements
include the results and dependence on exploratory drilling activities,
operating risks, oil and gas price levels, land issues, availability
of equipment, weather and other risks described in the Company's
Form 10-K for the year ended December 31, 2001 and its other filings
with the Securities and Exchange Commission.
Reports
Financial Results for Third Quarter 2002
HOUSTON, November 8, 2002 -- Carrizo Oil & Gas, Inc. (NASDAQ:CRZO)
today reported the Company's financial results for the third quarter
of 2002, which included the following highlights:
-- Revenues of $6.8 million, a 10 percent increase over third
quarter 2001 levels despite lower realized oil and gas prices. Revenues for the three months ended September 30, 2002 increased
10 percent to $6.8 million as compared to $6.2 million during the
quarter ended September 30, 2001. Quarterly production increased
31 percent over the prior year level, however oil and natural gas
prices averaged 16 percent less than prior year levels. Production
volumes during the three months ended September 30, 2002 were 1,814
MMcfe as compared to 1,385 MMcfe during the third quarter of 2001.
Carrizo's average oil sales price decreased four percent to $23.82
per barrel from $24.75 per barrel a year ago, and the Company's
average natural gas sales price decreased 21 percent to $3.57 per
Mcf from $4.52 per Mcf during the third quarter of 2001. The above
prices include the effects of hedging activities.
Cash flows from operating activities before changes in assets
and liabilities ("Operating Cash Flow") during the third quarter
of 2002 were $4.3 million, or $0.30 per basic share, as compared
to $4.6 million, or $0.33 per basic share, during the third quarter
of 2001. While revenues increased, Operating Cash Flow was adversely
affected by higher lease operating expenses, primarily severance
taxes, and general and administrative expenses. After dividends
and accretion of discount on preferred stock ("Preferred Stock Dividends"),
the Company reported net income of $1.0 million, or $0.07 and $0.06
basic and diluted per share, respectively, for the three months
ended September 30, 2002, as compared to $3.5 million, or $0.25
and $0.22 basic and diluted per share, respectively, for the same
quarter during 2001. Net income for the quarter ended September
30, 2002 was net of deferred federal income tax expense of $633,000
and $173,000 of Preferred Stock Dividends, as compared to $1.93
million of deferred federal income tax expense and no Preferred
Stock Dividends during the quarter ended September 30, 2001. Net
income for the quarter ended September 30, 2001 also included (1)
a one-time gain on the sale of an investment of $2.5 million net
of related federal income tax expense and (2) a charge totaling
$900,000 net of related federal income tax benefit in respect of
the final settlement of litigation.
Oil and gas operating expenses, including severance taxes, increased
to $1.3 million during the three months ended September 30, 2002,
as compared to $928,000 during the third quarter of 2001, due primarily
to higher severance taxes in 2002 and the cost of operating an increased
number of wells. On a per unit basis, excluding severance taxes,
oil and gas operating expenses were unchanged at $0.49 per Mcfe
during the third quarter of 2002 as compared to the third quarter
of 2001. Excluding lifting costs at the Camp Hill oil project (which
averaged $14.95 per Boe or $2.49 per Mcfe) and severance taxes,
oil and gas operating expenses were $0.46 per Mcfe during the three
months ended September 30, 2002.
Depreciation, depletion and amortization expenses ("DD&A") were
$2.7 million during the three months ended September 30, 2002 ($1.50
per Mcfe), as compared to $1.7 million ($1.21 per Mcfe) during the
third quarter of 2001. The increase in DD&A was due to increased
production levels and additions to the proved property cost base.
General and administrative expenses ("G&A") increased to $990,000
during the three months ended September 30, 2002 from $691,000 during
the same quarter of 2001. On a per unit basis, G&A expenses were
$0.55 per Mcfe during the third quarter of 2002 as compared to $0.50
per Mcfe during the same period during 2001. The increase in G&A
was due primarily to the addition of staff to handle increased drilling
and production activities.
Revenues for the nine months ended September 30, 2002 were $17.6
million, as compared to $22.0 million during the nine months ended
September 30, 2001. While production levels increased 21 percent
over prior year levels, revenues decreased due to significantly
lower oil and gas prices, which averaged 34 percent less than prices
realized during the 2001 period. Production volumes during the nine
months ended September 30, 2002 were 5.1 Bcfe as compared to 4.2
Bcfe during the first nine months of 2001. Carrizo's average natural
gas sales price decreased 40 percent to $3.24 per Mcf from $5.41
per Mcf a year ago, while the Company's average oil sales price
decreased nine percent to $23.34 per barrel from $25.77 per barrel
during the first nine months of 2001. The above prices include the
effects of hedging activities.
Operating Cash Flow during the first nine months of 2002 was $10.3
million, or $0.73 per basic share, as compared to $16.4 million,
or $1.17 per basic share, during the first nine months of 2001.
Operating Cash Flow decreased primarily as a result of lower revenues.
After Preferred Stock Dividends of $415,000, the Company reported
net income of $2.0 million, or $0.14 and $0.12 basic and diluted
per share, respectively, for the nine months ended September 30,
2002, as compared to net income of $9.3 million, or $0.66 and $0.56
basic and diluted per share, respectively, for the same period during
2001. The first nine months of 2002 results are net of $1.3 million
of deferred federal income tax expense, as compared to $5.1 million
of deferred federal income tax expense during the first nine months
of 2001. Net income for the nine months ended September 30, 2001
also included (1) a one-time gain on the sale of an investment of
$2.5 million net of related federal income tax expense and (2) a
charge totaling $900,000 net of related federal income tax benefit
in respect of the final settlement of litigation.
Oil and gas operating expenses, including severance taxes, increased
to $3.7 million during the nine months ended September 30, 2002,
as compared to $3.4 million during the first nine months of 2001,
primarily due to the cost of operating an increased number of wells.
On a per unit basis, excluding severance taxes, oil and gas operating
expenses increased slightly to $0.49 per Mcfe, as compared to $0.48
per Mcfe during the first nine months of 2001. Excluding lifting
costs at the Camp Hill oil project (which averaged $14.39 per Boe
or $2.40 per Mcfe) and severance taxes, oil and gas operating expenses
were $0.45 per Mcfe during the nine months ended September 30, 2002.
DD&A was $7.3 million during the nine months ended September 30,
2002 ($1.44 per Mcfe) as compared to $5.0 million ($1.18 per Mcfe)
during the first nine months of 2001. The increase in DD&A was due
to increased production levels and additions to the proved property
cost base.
"We are pleased to report another quarter of strong cash flow
and earnings," commented S. P. Johnson IV, Carrizo's President and
Chief Executive Officer. "The addition of production from new wells,
primarily the Burkhart #1-R well in Matagorda County, Texas, contributed
to a 31 percent increase in quarterly production over the prior
year level, which offset significantly lower oil and gas prices.
We expect our recent drilling success on high impact wells in Matagorda
and Liberty County and at Delta Farms to add significantly to production
volumes beginning in fourth quarter 2002 and to be fully reflected
in the first quarter 2003 results. We plan to drill three additional
high impact potential wells in our key project areas during the
fourth quarter, which, if successful, are expected to lead to further
production growth. Carrizo continues to increase its high quality
prospect inventory through the addition of seismic data and further
analysis of such data in our key project areas."
Carrizo Oil & Gas, Inc., is a Houston-based energy company engaged
in the exploration, development, exploitation and production of
oil and natural gas in proven onshore trends primarily along the
Texas and Louisiana Gulf Coast regions. Carrizo controls significant
prospective acreage blocks and utilizes advanced 3-D seismic techniques
to identify potential oil and gas reserves and drilling opportunities.
Statements in this news release, including but not limited to
those relating to the results, potential effects or impact, schedule,
prospects or estimates for current or future drilling or wells,
expected significant addition to production volumes beginning in
fourth quarter 2002 and in first quarter 2003 as a result of recent
drilling success, the planned number of additional high impact potential
wells to be drilled in the fourth quarter including the success
thereof, the potential of such wells to lead to further production
growth, and other statements that are not historical facts are forward
looking statements that are based on current expectations. Although
the Company believes that its expectations are based on reasonable
assumptions, it can give no assurance that these expectations will
prove correct. Important factors that could cause actual results
to differ materially from those in the forward looking statements
include the results and dependence on exploratory drilling operations,
operating risks, oil and natural gas price levels, land issues,
availability of equipment, weather and other risks described in
the Company's Form 10-K for the year ended December 31, 2001 and
other filings with the Securities and Exchange Commission.
Updates
Third Quarter Operations
HOUSTON, October 24, 2002 -- Carrizo Oil & Gas, Inc. (NASDAQ:CRZO)
today announced the operating results for the third quarter of 2002.
In the Company's core areas in South Texas and Louisiana, the Company
participated in the drilling of five gross exploratory wells, three
of which were successful. Since the beginning of the year, and including
the most recent successful well in Liberty County, Texas, the Company
participated in the drilling of 13 wells, 11 of which have been
successful, resulting in an 85 percent apparent success rate year
to date. As of the end of the quarter, four successful wells were
in process of being completed, or were awaiting pipeline hookup
to commence production, and drilling operations were underway on
two additional wells.
Production during the third quarter of 2002 was estimated at 1.81
Bcfe, an increase of 31 percent over third quarter 2001 levels.
Natural gas compromised 63 percent of third quarter production.
The Company estimates that third quarter 2002 sales prices averaged
approximately $3.46 per Mcf and $23.81 per barrel. These prices
include the effects of hedging activities which resulted in an increase
in the realized price of natural gas sold by $0.02 per Mcf and reduced
the realized price of oil sold by $0.86 per barrel. The oil sales
price also reflects the large volume of condensate production relative
to total oil production.
Third quarter 2002 operating highlights included the following:
-- On June 30, 2002, the Company, as operator, spud the "Delta
Farms #2" well in the Company's LaRose prospect area in Lafourche
Parish, Louisiana. The Company owns a 40 percent working interest
in this well, which is a follow-up well to the initial test well,
the "Delta Farms #1", that has produced over 2.5 Bcfe since it began
production in late March 2002. The Delta Farms #2 well reached total
depth on August 28, 2002 and tested at a gross rate of 1,464 barrels
of oil and 3,800 Mcf of gas (i.e. 12,584 Mcfe) per day at 8,570
psi flowing tubing pressure. Production facilities are under construction
and the well is expected to commence sales in mid to late November.
-- On August 29, 2002, the Company spud the "Hankamer #1", a 12,500
foot well in the Company's Liberty County, Texas Project Area. The
well reached total depth after the end of the quarter, on October
4, 2002, and logged approximately 40 feet of net pay in the Cook
Mountain formation. The well has been successfully completed and
tested at a gross rate of 10,490 Mcf of gas and 772 barrels of oil
(i.e. 15,122 Mcfe) per day at 7,166 psi flowing tubing pressure.
Carrizo is the operator and owns a 40 percent working interest.
Production facilities are under construction and the well is expected
to commence production in December 2002. The Company plans to spud
another exploratory well in Liberty County later this year.
The third quarter production volumes included no contribution
from the recently completed Hankamer #1 well or any of the other
three successful wells drilled during the quarter.
"Carrizo again achieved excellent operating results in the third
quarter of 2002," commented S.P. Johnson IV, Carrizo's President
and Chief Executive Officer. "Two successful high impact wells,
the Delta Farms #2 and Pauline Huebner A-382 #1 reached total depth
during the quarter, and a third high impact well, the Hankamer #1,
which was drilling at the end of the quarter, reached total depth
on October 4th. These wells and the other successful third quarter
well, all of which are either being completed or awaiting pipeline
hookup, have tested at a combined gross rate of 21,175 Mcf of gas
and 4,465 barrels of oil (i.e. 48,000 Mcfe) per day, and are expected
to produce at a combined gross rate of 16,000 Mcf of gas and 3,350
barrels of oil (i.e. 36,000 Mcfe) per day once they are online to
sales, which is expected to occur in the fourth quarter. At the
expected combined production rates, these wells would contribute
approximately 1,000 barrels of oil and 5,000 Mcf of gas (i.e. 11,000
Mcfe) per day to Carrizo's net revenue interest as compared to the
average actual production rate of 19,721 Mcfe per day in the third
quarter."
Carrizo Oil & Gas, Inc., is a Houston-based energy company engaged
in the exploration, development, exploitation and production of
oil and natural gas in proven onshore trends primarily along the
Texas and Louisiana Gulf Coast regions. Carrizo controls significant
prospective acreage blocks and utilizes advanced 3-D seismic techniques
to identify potential oil and gas reserves and drilling opportunities.
Statements in this news release, including but not limited to
those relating to the results, potential effects, risk profiles,
schedule, prospects or estimates for current or future drilling
or wells, expected timing of commencement of sales from the Delta
Farms #2 well, Pauline Huebner A-382 #1, Hankamer #1 and other third
quarter wells and the expected gross and net rates of such production
and the expected contribution to the Company's net production rates,
additional follow-up and exploratory wells planned to be spud later
this year, and other statements that are not historical facts are
forward looking statements that are based on current expectations.
Although the Company believes that its expectations are based on
reasonable assumptions, it can give no assurance that these expectations
will prove correct. Important factors that could cause actual results
to differ materially from those in the forward looking statements
include the results and dependence on exploratory drilling activities,
operating risks, oil and gas price levels, land issues, availability
of equipment, weather and other risks described in the Company's
Form 10-K for the year ended December 31, 2001 and its other filings
with the Securities and Exchange Commission. Drilling success rates
do not include the results of the Company's participation in coalbed
methane wells in Wyoming and Montana, the success of which will
be determined after further evaluation.
Issues
Upward Revision to Diluted Earnings Per Common Share
HOUSTON, August 13, 2002 -- Carrizo Oil & Gas, Inc. (Nasdaq: CRZO)
today issued a revision to the Company's press release dated August
5, 2002.
The diluted net income per common share for the three months ended
June 30, 2002 should have read $0.06 per share versus $0.05 as previously
reported. The diluted net income per common share for the six months
ended June 30, 2002 should have read $0.07 per share versus $0.06
previously reported.
The revision was necessary in order to properly reflect dividends
and accretion of discount on preferred stock in the calculation
of diluted net income per common share.
Carrizo Oil & Gas, Inc. is a Houston-based energy company engaged
in the exploration, development, exploitation and production of
oil and natural gas in proven onshore trends primarily along the
Texas and Louisiana Gulf Coast regions. Carrizo controls significant
prospective acreage blocks and utilizes advanced 3-D seismic techniques
to identify potential oil and gas reserves and drilling opportunities.
Reports
Financial Results for Second Quarter 2002
HOUSTON, August 5, 2002 -- Carrizo Oil & Gas, Inc. (Nasdaq: CRZO)
today reported the Company's financial results for the second quarter
of 2002, which included the following highlights: Revenues for the three months ended June 30, 2002 were $6.8 million
as compared to $7.1 million during the quarter ended June 30, 2001.
Production increased 29 percent over prior year levels, however
revenues decreased due to lower oil and natural gas prices, which
averaged 26 percent lower than prior year levels. Production volumes
during the three months ended June 30, 2002 were 1,877 MMcfe as
compared to 1,454 MMcfe during the second quarter of 2001. Production
volumes increased 32 percent over first quarter 2002 levels. Carrizo's
average oil sales price decreased six percent to $24.35 per barrel
from $25.97 per barrel a year ago, and the Company's average natural
gas sales price decreased 32 percent to $3.42 per Mcf from $5.02
per Mcf during the second quarter of 2001. The above prices include
the effects of hedging activities. Oil and gas operating expenses, including severance taxes, were
$1.34 million during the three months ended June 30, 2002, as compared
to $1.13 million during the second quarter of 2001. On a per unit
basis, oil and gas operating expenses decreased to $0.71 per Mcfe
from $0.78 per Mcfe during the first quarter of 2001 due primarily
to the effect of the addition of production from new higher rate
wells offset by the relatively higher costs per unit of operating
wells as they naturally decline. Excluding lifting costs at the
Camp Hill oil project (which averaged $8.46 per Boe or $1.49 per
Mcfe) and severance taxes, oil and gas operating expenses were $0.46
per Mcfe during the three months ended June 30, 2002, as compared
to $0.47 per Mcfe for the same quarter during 2001.
DD&A expenses were $2.6 million during the three months ended June
30, 2002 ($1.40 per Mcfe), as compared to $1.7 million ($1.16 per
Mcfe) during the second quarter of 2001. The increase in DD&A was
due to increased production levels and additions to the proved property
cost base.
General and administrative expenses ("G&A") increased to $1.1 million
during the three months ended June 30, 2002 from $873,000 during
the same quarter of 2001. On a per unit basis, G&A expenses were
$0.61 per Mcfe during the second quarter of 2002 as compared to
$0.60 per Mcfe during the same period during 2001. The increase
in G&A was due primarily to the addition of staff to handle increased
drilling and production activities.
Revenues for the six months ended June 30, 2002 were $10.8 million,
as compared to $15.8 million during the six months ended June 30,
2001. Revenues decreased due to significantly lower oil and gas
prices than those prevailing in 2001. The average oil and natural
gas prices received decreased by 41 percent, but were offset by
a 16 percent increase in production levels. Production volumes during
the six months ended June 30, 2002 were 3,295 MMcfe as compared
to 2,840 MMcfe during the first half of 2001. Carrizo's average
natural gas sales price decreased 47 percent to $3.08 per Mcf from
$5.84 per Mcf a year ago. The Company's average oil sales price
decreased 13 percent to $22.97 per barrel from $26.28 per barrel
during the first half of 2001. The above prices include the effects
of hedging activities.
Operating Cash Flow during the first six months of 2002 was $6.03
million, or $0.43 per basic share, as compared to $11.8 million,
or $0.84 per basic share, during the first half of 2001. Operating
Cash Flow decreased primarily as a result of lower revenues. After
dividends and accretion of discount on preferred stock of $242,000,
the Company reported net income of $976,000, or $0.07 and $0.06
basic and diluted per share, respectively, for the six months ended
June 30, 2002, as compared to net income of $5.8 million, or $0.41
and $0.35 basic and diluted per share, respectively, for the same
period during 2001. The first half 2002 results are net of $700,000
of deferred federal income tax expense, as compared to $3.1 million
of deferred federal income tax expense during the first half of
2001.
Oil and gas operating expenses, including severance taxes, decreased
to $2.35 million during the six months ended June 30, 2002, as compared
to $2.43 million during the first half of 2001, primarily as a result
of lower severance taxes, which are based on oil and gas prices,
offset by the cost of operating an increased number of wells. On
a per unit basis, excluding severance taxes, oil and gas operating
expenses increased to $0.49 per Mcfe from $0.48 per Mcfe during
the first half of 2001. Excluding lifting costs at the Camp Hill
oil project (which averaged $14.14 per Boe or $2.36 per Mcfe) and
severance taxes, oil and gas operating expenses were $0.46 per Mcfe
during the six months ended June 30, 2002.
DD&A expenses were $4.61 million during the six months ended June
30, 2002 ($1.40 per Mcfe) as compared to $3.32 million ($1.17 per
Mcfe) during the first half of 2001. The increase in DD&A was due
to increased production levels and additions to the proved property
cost base.
G&A increased to $2.06 million during the six months ended June
30, 2002 from $1.74 million during the same period of 2001. On a
per unit basis, G&A expenses increased to $0.63 per Mcfe during
the first half of 2002, as compared to $0.61 per Mcfe during the
same period during 2001. The increase in G&A was due primarily to
addition of staff to handle increased drilling and production activities.
"We are pleased to report significantly improved results for the
second quarter compared to the first quarter," commented S. P. Johnson
IV, Carrizo's President and Chief Executive Officer. "The results
were driven by a 32 percent increase in production over first quarter
2002 levels and a 29 percent increase over second quarter 2001.
The production levels reflected a full quarter of production from
the 'Louisiana Delta Farms #1' well that commenced production in
late March 2002, as well as a full quarter of production from the
'Staubach #1' well in Matagorda County, Texas. Since the end of
the quarter, production has commenced from the 'Burkhart #1-R' well,
a follow-up well to the Staubach #1, which commenced production
on July 9, 2002 at over 17,500 Mcfe per day (4,600 Mcfe per day
net to Carrizo). Drilling is progressing on the follow-up Delta
Farms well, the 'Louisiana Delta Farms et al No. 2' which is now
at a depth of approximately 12,500 feet and the 'Pauline Huebner
A-382 No. 1' well in Matagorda County which is now at a depth of
approximately 6,000 feet.
"We are also pleased to announce that Jeremy Greene has joined
Carrizo as Vice President of Exploration. Jeremy has over 19 years
of geoscience experience having previously been with ARCO, Vastar
and EOG. Jeremy holds a B.S. degree in Geophysical Engineering from
Colorado School of Mines and a Masters degree in Geophysics from
the University of Texas. Jeremy replaces George Canjar who has left
Carrizo to accept a position with a large private exploration company."
Carrizo Oil & Gas, Inc., is a Houston-based energy company engaged
in the exploration, development, exploitation and production of
oil and natural gas in proven onshore trends primarily along the
Texas and Louisiana Gulf Coast regions. Carrizo controls significant
prospective acreage blocks and utilizes advanced 3-D seismic techniques
to identify potential oil and gas reserves and drilling opportunities.
Statements in this news release, including but not limited to those
relating to the results, potential effects, schedule, prospects
or estimates for current or future drilling or wells, and other
statements that are not historical facts are forward looking statements
that are based on current expectations. Although the Company believes
that its expectations are based on reasonable assumptions, it can
give no assurance that these expectations will prove correct. Important
factors that could cause actual results to differ materially from
those in the forward looking statements include the results and
dependence on exploratory drilling operations, operating risks,
oil and natural gas price levels, land issues, availability of equipment,
weather and other risks described in the Company's Form 10-K for
the year ended December 31, 2001 and other filings with the Securities
and Exchange Commission.
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