From Carrizo Oil and Gas:
HOUSTON, Jan. 28, 2014 (GLOBE NEWSWIRE) -- Carrizo Oil & Gas, Inc.'s (Nasdaq:CRZO) senior management is hosting an analyst conference today to provide an update on the company's current operations and future plans. The presentation includes the following key highlights:
S.P. "Chip" Johnson, IV, Carrizo's President and CEO, commented, "2013 was a banner year for Carrizo as we completed our transition from a gas-focused company to an oil-focused company and delivered crude oil production growth of approximately 48%. And 2014 is setting up to be an even better year for Carrizo as our continued success in the Eagle Ford Shale should drive production growth of approximately 50% this year."
Eagle Ford Shale
Due to the strong performance across its position in the Eagle Ford Shale, Carrizo is increasing its type curve per-well EUR for the play to 523 MBoe from 495 MBoe. Additionally, Carrizo has continued to improve its operating efficiency in the play, and now expects completed well costs to average $7.5 million vs. $8.0 million previously.
Carrizo's acreage position in the Eagle Ford Shale trend currently stands at approximately 62,200 net acres, up from approximately 58,000 net acres at the end of the third quarter. The Company continues to actively lease acreage in the core volatile oil window of the Eagle Ford Shale.
In the Utica Shale, Carrizo's first well, the Rector 1H in Guernsey County, has been flowing consistently since January 5, 2014. After progressively increasing the choke from 16/64 in. to 24/64 in., Carrizo reduced the choke to 14/64 in. for a long-term stabilized test. The well has recently been flowing at a stabilized rate of approximately 500 Bbl/d of condensate and 2.0 MMcf/d of rich natural gas with very strong pressure on the reduced choke. Carrizo is very encouraged by the early results from the Rector 1H well, as the condensate production is comparing favorably to the Company's type curve, which assumed an average initial 30-day condensate rate of approximately 500 Bbl/d.
2014 Production and Capital Spending Outlook
Carrizo increased its planned Eagle Ford Shale completions in 2014 due to the high returns generated from the play plus the drilling and completion efficiencies it has been able to achieve. Carrizo now plans to complete approximately 49 net Eagle Ford Shale wells in 2014, which equates to approximately 450 additional net frac stages compared to the previously-announced plan. The cost of roughly 250 of the additional net frac stages is expected to be offset by the impact of the lower well costs.
Given the higher level of projected completion activity in the Eagle Ford Shale, Carrizo is increasing its full-year 2014 drilling and completion capital expenditure plan by $50 million to $650-$670 million. The Company is maintaining its 2014 land and seismic capital expenditure plan of $75 million.
Due to the increased Eagle Ford Shale activity, Carrizo is increasing its 2014 oil production guidance to a range of 17,000-17,800 Bbls/d. Using the midpoint of this range, the Company's 2014 oil production growth guidance increases to 50% from at least 40%. For natural gas and NGLs, Carrizo is providing initial 2014 guidance of 67-75 MMcfe/d. For the first quarter of 2014, Carrizo expects oil production to be 14,100-14,500 Bbls/d and natural gas and NGL production to be 60-66 MMcfe/d. A summary of Carrizo's production and cost guidance is provided in the attached tables.
Fourth Quarter 2013 Update
Preliminary estimates of production volumes during the fourth quarter of 2013 were 24,776 Boe/d. Preliminary estimates of oil production during the quarter averaged 13,029 Bbls/d, while preliminary estimates of natural gas and NGL production averaged 70,483 Mcfe/d. Based on these preliminary estimates, crude oil production during the fourth quarter exceeded the high end of Company guidance.
Conference Call Details
The Company plans to webcast its analyst conference today. The management presentation is scheduled to begin at 9:00 am Central Time, and the webcast of the presentation as well as the slide book used can be accessed on the Carrizo website at http://www.crzo.net under the "Investor Relations" section. A replay of the event will be available until April 27, 2014.
|Carrizo Oil and Gas, Inc.|
|First Quarter and Full Year 2014 Guidance Summary|
|First Quarter 2014||Full Year 2014|
|Daily Production Volumes|
|Crude Oil (Bbl/d)||14,100 - 14,500||17,000 - 17,800|
|Natural Gas and NGLs (Mcfe/d)||60,000 - 66,000||67,000 - 75,000|
|Total (Boe/d)||24,100 - 25,500||28,167 - 30,300|
|Realized Gain on Derivatives, net||N/A||N/A|
|Costs and Expenses|
|Lease Operating ($/Boe)||N/A||$5.50 - $6.00|
|Production Taxes (% of oil and gas revenues)||N/A||4.00% - 4.25%|
|Ad Valorem Taxes (in millions)||N/A||$11.0 - $12.0|
|General and Administrative (in millions)||N/A||N/A|
|Drilling & Completion Capital Expenditure Plan (in millions)||N/A||$650.0 - $670.0|
Carrizo Oil & Gas, Inc. is a Houston-based energy company actively engaged in the exploration, development, and production of oil and gas from resource plays located in the United States. Our current operations are principally focused in proven, producing oil and gas plays primarily in the Eagle Ford Shale in South Texas, the Niobrara Formation in Colorado, the Marcellus Shale in Pennsylvania, and the Utica Shale in Ohio.
Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.
Rig Count Interactive Map by Baker Hughes, an energy services company.
Shale Sheet Fracking, a Youngstown Vindicator blog.
The Ohio Environmental Council, a statewide eco-group based in Columbus.
Earthjustice, a national eco-group.
People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.
Concerned Citizens of Medina County, a grass-roots group.
No Frack Ohio, a Columbus-based grass-roots group.
Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.
Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.
Allegheny Front, environmental public radio for Western Pennsylvania.