Carrizo to Increase Eagle Ford Activity

Carrizo Earnings Report
Carrizo Earnings Report

Carrizo credited the company's Eagle Ford Shale assets for their strong first quarter performance and announces plans to increase activity in the region.

Related: Carrizo Focuses on Eagle Ford

In a press release last week, Carrizo Oil & Gas executives reported 2016 first quarter results that included an adjusted net income of $9.2 million. The company also reported record production of 42,025 Boe/d, 21% above the first quarter of 2015.

Sylvester P. Johnson, CEO, commented “We remain on track to achieve (our) goals. Our 2016 drilling and completion capital expenditure guidance of $270 million to $290 million is unchanged, but due to further efficiencies and cost savings, we’ve been able to increase our planned activity levels in the Eagle Ford and Delaware Basin during the year.

Eagle Ford Operations

Carrizo spent approximately 85% of its budget in the Eagle Ford and acquired 4,000 net acres in the region. For the remainder of 2016, the company plans to increase crude oil production growth target to 9%.

Our focus on cost reductions and efficiency gains continued to bear fruit during the quarter, as we were able to lower our expected well costs in the Eagle Ford to $4.1 million from $4.6 million per well, said Johnson

Other first quarter Eagle Ford highlights:

  • Expects to drill approximately 57 gross (53 net) operated wells and complete 55 gross (52 net) operated wells in the play during 2016
  • Drilled 18 gross (17.0 net) operated wells
  • Completed 14 gross (12.5 net) wells
  • Crude oil production from the play rose to approximately 22,800 Bbls/d for the quarter, up 2% versus the prior quarter
  • 33 gross (31.8 net) operated Eagle Ford wells waiting on completion
  • Operating two rigs
  • Reduction of well costs for a 6,100 ft. lateral well are currently expected to average approximately $4.1 million, down from $4.6 million previously.