Carrizo Oil & Gas Announces Initial Production Rates

Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) provides an operational update on the Company’s activities in the Eagle Ford Shale and Niobrara Formation.

The press release is quoted as saying:

Carrizo’s initial two Eagle Ford Shale wells were drilled from a common surface location in central La Salle County, Texas. The Mumme Ranch 10H was drilled with a 5,493 foot horizontal leg and was completed with 15 frac stages. The Mumme Ranch 12H was drilled with a 5,455 foot horizontal leg and was completed with 19 frac stages. Following the flow-back of completion fluids, the two wells were tested for production potential beginning on November 20, 2010. The Mumme 10H had a 24-hour initial production rate of 1,011 barrels of oil per day (“Bopd”) while the Mumme 12H had a 24-hour initial production rate of 1,220 Bopd. Production from this two-well pad appears to have stabilized at the current combined rate of approximately 1,125 barrels of oil per day. Approximately 2 million cubic feet per day of 1,367 btu per mcf natural gas is currently being flared pending connection to a gas gathering pipeline. Carrizo has a 100% working interest and a 75% net revenue interest in these two wells.

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