Carizzo Spends Big in the Eagle Ford

Carizzo 2016 Q3

Carizzo 2016 Q3

Carrizo’s third quarter included spending a hefty chunk of their drilling budget on the Eagle Ford.

Related: Carrizo Seeks Co-investor for Eagle Ford Deals

Carrizzo Oil and Gas executives announced a solid quarter for the company, with net oil production of 24,488 barrels of oil per day and revenues of $111 million.

We have continued to expand our inventory of de-risked drilling locations in the Eagle Ford Shale. We also expect to further expand our drilling inventory through the recently-announced, accretive acquisition of bolt-on Eagle Ford Shale properties from Sanchez. As a result, we now have more than 1,100 net de-risked locations in the Eagle Ford Shale, or more than 16 years of inventory at our current drilling pace. Over time we expect to continue to expand our drilling inventory on this world-class asset, which should fuel strong production growth for years to come.
— President and CEO Chip Johnson

Eagle Ford Operations

Approximately 80% of the Carizzo’s third quarter drilling and completion spending was in the Eagle Ford Shale. Other highlights include:

  • Drilled 17 gross (14.9 net) operated wells
  • Completed 24 gross (23.2 net) wells
  • Crude oil production was more than 21,600 Bbls/d, up 2% versus the prior quarter
  • Company expects fourth quarter volumes to show a material increase
  • At the end of the quarter, company has 26 gross (23.8 net) operated  wells waiting on completion
  • Currently operating two rigs in the Eagle Ford and
  • Company expects to drill approximately 71 gross (67 net) operated wells and complete 73 gross (69 net) operated wells in the play during 2016

Last month, Carrizo agreed to acquire approximately 15,000 net acres located primarily in the the Eagle Ford Shale for $181 million with an estimated net production during of approximately 3,100 Boe/d (61% oil). Following the closing of the transaction, Carrizo will hold approximately 101,000 net acres in the Eagle Ford Shale, concentrated in LaSalle, McMullen, and Atascosa counties.