Carrizo Plans Eagle Ford Acquisitions

Carrizo Q3 2015
Carrizo Q3 2015

Carrizo Oil and Gas released third quarter earnings that included plans to jump on new opportunities in the Eagle Ford.

Related:Eagle Ford Shale Drives Carrizo's Q1

During the third quarter of 2015, Carrizo reported a net loss of $708 million. They also achieved record oil production of23,573 Bbls/d, 18% above the third quarter of 2014.

Carrizo's executives are quick to credit the company's Eagle Ford operations for the strong production growth. In an earnings call earlier this month, the CEO revealed that they are looking around for additional opportunities to acquire more Eagle Ford assets

Well, we’re opportunistic about Eagle Ford acreage in our area. The economics of buying that acreage and then drilling on it is the most profitable thing we have in the company right now. We’ve never paid big prices to buy acreage in the Eagle Ford. So we’ve never gone to the $30,000 or $40,000 per acre as some of the prices in DeWitt, Karnes areas have gone to. So we’re offering sometimes $1 or $2 a barrel essentially for PUDs when we make Eagle Ford acquisitions.
— Sylvester P. Johnson - President, Chief Executive Officer & Director

Eagle Ford highlights:

  • Cost reduction initiatives, including the saltwater disposal system in the Eagle Ford that has substantially reduced the amount of water being trucked to disposal sites
  • Drilling and completion capital expenditures for the quarter were $122 million, over 85% of which was in the Eagle Ford
  • Producing from 250 gross or 219 net wells with two drilling rigs running and one 24/7 frac crew
  • 25 gross or 23.2 net operated Eagle Ford wells waiting on completion, equating to net crude oil production potential of approximately 8,700 barrels per day

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