Carrizo Oil & Gas Annual Proved Reserves Up 66%

Carrizo Oil & Gas has reported that proved reserves were a record 347.6 billion cubic feet equivalent based on reports from Carrizo’s third-party reserve engineers for 2007, a 66% increase, compared to proved reserves of 210 billion cubic feet equivalent for 2006.

Year-end PV-10 value of the company’s proved reserves was $840 million, as compared to $387.2 million at the end of 2006, based upon year-end average spot prices for natural gas and year-end average posted prices for oil and natural gas liquids of $5.99 per million cubic feet (mcf), $92.04 per barrel and $56.67 per barrel, respectively.

Production during the fourth quarter of 2007 was a record 5.64bcfe, or 54% above the 3.66bcfe of production in the fourth quarter of 2006 and 27% above the third quarter of 2007 production, the company said. Estimated annual production for 2007 reached a record level of 17.5bcfe, or 49% higher than the 11.7bcfe of production in 2006.

The company estimates that sales prices, including the effect of hedging activities, averaged approximately $6.83 per mcf and $83.65 per barrel in the fourth quarter of 2007. The natural gas sales price was benefited $0.28 per mcf by hedging activities. The oil sales price was negatively impacted $7.03 per barrel by hedging activities.