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Carrizo Oil & Gas, Inc. Makes Two Independent Discoveries at Huntington Prospect in UK Central North Sea

Posted on: Tuesday, 5 June 2007, 06:00 CDT

HOUSTON, June 5 /PRNewswire-FirstCall/ -- Carrizo Oil & Gas, Inc. has made two significant discoveries in the Paleocene and Jurassic reservoirs of its Huntington Prospect in UK license P.1114 of the Central North Sea. Carrizo has a 15% working interest after casing point in the 22/14b-5 discovery well and any future wells in the block. Carrizo, as license operator, currently holds licenses in four Central N. Sea blocks containing over 31,450 contiguous net acres, including blocks 22/14b (15%WI), 22/19b (15%), 22/13b (27.3%) and 22/8c (100%) and has generated multiple prospects in both geological objectives over this area.

(Logo: http://www.newscom.com/cgi-bin/prnh/20030523/CRZOLOGO )

S.P. Johnson IV, Carrizo's President and Chief Executive Officer, commented "These two new discoveries should significantly increase the company's reserves, and we have more than ten other internally-generated prospects in the immediate area to leverage our position. This success reinforces DTI's (Dept. of Trade and Industry) recent strategy of bringing new companies into the UK North Sea to energize another round of growth through the use of advanced 3-D seismic techniques. Carrizo has been acquiring licenses and generating prospects in the UK North Sea since 2003, and has successfully obtained licenses in three of the past four license rounds. Our hope is to see Huntington grow into another new production hub that will serve this well-established oil and gas province."

The discovery well on 22/14b of this Carrizo generated prospect was drilled to a total depth of 13,325 feet into the Triassic Skagerrak Formation. Oil bearing reservoir sands were encountered in the Paleocene Forties at a depth of 8,960 feet, and in the Upper Jurassic Fulmar at a depth of 12,770 feet. In the Paleocene Forties sand 98 gross feet of oil bearing sand was logged. Wireline pressure and sampling tools recovered 42 degree API sweet crude from this interval. In the Upper Jurassic Fulmar sand, at least 58 gross feet of oil bearing sand was logged, containing 40 degree API sweet crude.

Wireline evaluation has just been completed over the Upper Jurassic Fulmar interval, and preparations for cased hole drillstem testing of the Fulmar and/or Paleocene Forties interval will commence shortly. Testing operations are expected to be completed over the course of this month and the well will then be suspended for future use.

The structures tested by the 22/14b-5 well are both significant. The size of the Paleocene Forties sand structure is currently estimated to be approximately 3,460 acres. The areal extent of the Upper Jurassic Fulmar sand accumulation is currently estimated to be at least 1,730 acres. In addition, the 22/14b-5 well was drilled in a flank position on both structures giving considerable possibilities for adding thicker oil columns in crestal positions.

The 22/14b-5 well was drilled by Oilexco (OIL.TO), which will become license operator following DTI approval, by virtue of farm-in to Carrizo's license. The early well results are very encouraging, and further appraisal of both oil accumulations is planned to confirm their size and deliverability, utilizing a semi-submersible drilling rig under long-term contract to Oilexco. An appraisal well is tentatively scheduled for the fourth quarter of 2007.

The companies participating in UK Licence P.1114 and the 22/14b-5 well are:

Oilexco North Sea Ltd. 40% (Well Operator) E.ON Ruhrgas UK Ltd. 25% Altinex Oil (UK) Ltd. 20% Carrizo Oil and Gas Inc. 15% (License Operator)

Carrizo Oil & Gas, Inc. is a Houston-based energy company actively engaged in the exploration, development, exploitation and production of oil and natural gas, primarily in proven onshore trends along the Texas and Louisiana Gulf Coast regions, in the Barnett Shale area in North Texas, and in the UK North Sea. Carrizo controls significant prospective acreage blocks and utilizes advanced 3-D seismic techniques to identify potential oil and gas reserves and drilling opportunities.

Statements in this news release, including but not limited to those relating to Carrizo's or management's intentions, beliefs, expectations, hopes, projections, assessment of risks, estimations, plans or predictions for the future, including testing, evaluation, potential effects or timing, cash flow, the expected timing of drilling of additional wells, well production rates, future drilling and completion of current drilling of wells, timing of production and other statements that are not historical facts are forward looking statements that are based on current expectations. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that these expectations will prove correct. Important factors that could cause actual results to differ materially from those in the forward looking statements include the results and dependence on exploratory drilling activities, results of testing, evaluation, timing, growth of Huntington, structure size, results of any drilling operations, operating risks, risks of foreign operation, risks of offshore operations, oil and gas price levels, land issues, availability of equipment, weather and other risks described in the Company's Form 10-K for the year ended December 31, 2006 and its other filings with the Securities and Exchange Commission.

Contact: Carrizo Oil & Gas, Inc. B. Allen Connell, Director of Investor Relations Paul F. Boling, Chief Financial Officer (713) 328-1000

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20030523/CRZOLOGOAP Archive: http://photoarchive.ap.org/PRN Photo Desk, photodesk@prnewswire.com

Carrizo Oil & Gas, Inc.

CONTACT: B. Allen Connell, Director of Investor Relations, or Paul F.Boling, Chief Financial Officer, both of Carrizo Oil & Gas, Inc.,+1-713-328-1000

Source: PRNewswire-FirstCall

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