Niobrara Shale

Carrizo Oil & Gas Signs Joint Venture Deal In Niobrara

Carrizo Oil & Gas (NASDAQ: CRZO) reported a joint venture agreement on its leasehold position in the Niobrara formation in in Weld and Adams Counties in Colorado.

Carrizo Oil & Gas sold a 30% interest in its Niobrara acreage to OIL India Ltd. and Indian Oil Corporation Ltd. for $82.5 million.  The company will receive $41.25 million in cash at closing and an additional $41.25 million in the form of a drilling carry to cover future development costs in the Niobrara.

Carrizo Oil & Gas said that the 30% includes 18,100 net acres and production of 555 barrels of oil equivalent (BOE) per day from 24 gross Niobrara wells.

Carrizo Oil and Gas Reports On Six Niobrara Shale Wells

Carrizo Oil and Gas (CRZO) reported on recent activity in Weld County, Colorado, where the company has 61,658 net acres prospective for the Niobrara Shale. 

Carrizo Oil and Gas has drilled six horizontal Niobrara Shale wells, put five wells onto production and expects to complete the sixth well shortly.

• Orlando Hill 26-44-8-61 well reached a peak 24 hour production rate of 650 barrels of oil per day. 
• Nelson 17-44-9-60 well is “on production at an increasing oil cut.”
• Wickstrom 7-11-5-60 has been drilled to total depth and is waiting on completion.
•  Carrizo State 16-11-9-60 tested at 690 barrels of oil per day. 
• Carrizo State 36-24-9-61 tested at 681 barrels of oil per day.
• Carrizo Bob White #1 tests at 725 barrels of oil per day.

Carrizo Oil and Gas has allocated $35 million in capital for the Niobrara Shale in 2012.

Carrizo Oil and Gas Reports Completion Of Bob White #1 Well Into Niobrara Shale

Carrizo Oil and Gas (CRZO) issued an operations update on its properties in Weld County, Colorado, where the company is working to develop the Niobrara Shale.

Carrizo Oil and Gas reported that the Bob White #1 well produced at a 24 hour gross rate of 725 barrels of oil per day, (595 net) and 785,000 cubic feet per day of natural gas (644,000 net).  The company said that current net production from the Bob White #1 Niobrara Shale well was 316 barrels of oil per day and 550,000 cubic feet per day of natural gas.  The natural gas is being flared until a connection can be made.

Carrizo Oil and Gas said that the State 36-24-9-61 well was drilled in late 2010, and is scheduled for completion in March 2011.