Carrizo Oil & Gas will test a Pearsall Shale well in late 2012. The Eagle Ford Shale is the company's primary focus in Frio, La Salle, McMullen, and Atascosa counties, but the Pearsall could add additional resource to the company's portfolio. The first test will spud in late November 2012 in Frio County. Just a couple of weeks ago, Cabot Reported Pearsall Shale Well Results that looked promising. Carrizo is following suit.
Carizzo also added 2,000 acres in La Salle County during the third quarter of 2012. The company now has more than 48,000 net acres prospective for the Eagle Ford. That acreage is predominately located in La Salle County, but stretches across three neighboring counties as well. The Pearsall is prospective on 30,000+ acres of the company's position, but it will take several exploration wells before the company knows where the play has liquids potential. Dry gas wells aren't going to be the target if natural gas prices stay low. [ic-c]
Carrizo's Eagle Ford Assets Continue Growth Trajectory
At the end of the third quarter, Carrizo was producing 7,200 b/d and 14 mmcfd net. The company is producing from 61 gross wells and has three rigs running continuously. 24 gross (19 net) wells are waiting to be brought to production. Four 80-acre spacing wells have been tested, but more production history is needed before the company can deem the down spacing test successful.
The company's first 45 wells averaged 530 b/d of production through the first 30 days. IP rates are coming in consistently in the 600-1,000 barrel range and EURs are estimated at approximately 400,000 boe per well. Oil production is also enjoying premiums of as much as $8 to NYMEX quoted prices. Watch for conclusive results on down spacing and production from the first Pearsall Test.