Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K DATED DECEMBER 14, 2009 - CARRIZO OIL & GAS INC | form8k_121409.htm |
| EX-99.2 - PRESS RELEASE DATED DECEMBER 15, 2009 - CARRIZO OIL & GAS INC | exh992.htm |
| EX-10.1 - ELEVENTH AMENDMENT TO CREDIT AGREEMENT - CARRIZO OIL & GAS INC | exh101.htm |
Exhibit
99.1
| PRESS RELEASE | Contact: | Carrizo Oil & Gas, Inc. |
| Richard Hunter, Vice President of Investor Relations | ||
| Paul F. Boling, Chief Financial Officer | ||
| (713) 328-1000 |
CARRIZO
OIL & GAS REPORTS AGREEMENT BY BANK SYNDICATE TO INCREASE BORROWING BASE TO
$350 MILLION WHICH WILL RAISE AVAILABLE LIQUIDITY TO $148 MILLION; PROVIDES
UPDATED HEDGE POSITIONS
HOUSTON, December 14, 2009
— Carrizo Oil & Gas, Inc. (Nasdaq: CRZO)
today announced that its banking syndicate, led by Wells Fargo as
administrative agent, has agreed to increase the commitments under its credit
facility to $350 million from $284 million, representing an increase of $66
million. The borrowing base and commitment increases will become
effective upon the execution of customary documentation by Carrizo and the
lenders, which is currently expected to occur this week. Currently,
the Company has an outstanding balance under its credit facility of
approximately $202 million, representing about 58% of a $350 million conforming
borrowing base.
Chief
Financial Officer Paul F. Boling stated, “We are very pleased to announce that
our banking syndicate has agreed to this substantial increase in our borrowing
base to $350 million, which will provide available liquidity of approximately
$148 million under the credit facility. In this environment of tightened credit
availability, we believe today's announcement affirms the continued confidence
in Carrizo's underlying asset base and core business strategy. Our 2010 capital
expenditure plans are currently under development and will be presented to the
Board of Directors for approval early next year.”
Carrizo's
next credit facility borrowing base redetermination is scheduled for the spring
of 2010.
Carrizo
is providing the following update to its natural gas hedging
program:
|
Natural
Gas Hedging Contracts
|
Volume
(MMcf)
|
Daily
Volume (MMcfed)
|
Effective
Price *
|
%
of 2009 Q3 Production
|
|
Q1
2010 Swaps and Collars
|
5,760
|
64
|
$6.19
|
72%
|
|
Q2
2010 Swaps and Collars
|
5,278
|
58
|
$5.56
|
64%
|
|
Q3
2010 Swaps and Collars
|
4,600
|
50
|
$5.83
|
56%
|
|
Q4
2010 Swaps and Collars
|
4,416
|
48
|
$6.04
|
54%
|
|
2010
Total
|
20,054
|
55
|
$5.91
|
61%
|
|
2011
Total
|
11,765
|
32
|
$6.32
|
36%
|
|
2012
Total
|
7,963
|
22
|
$6.52
|
24%
|
* After
basis differentials
About
the Company
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 the Barnett Shale in North Texas, the Marcellus Shale in
Appalachia, and in proven onshore trends along the Texas and Louisiana Gulf
Coast regions. Carrizo controls significant prospective acreage blocks and
utilizes advanced drilling and completion technology along with sophisticated
3-D seismic techniques to identify potential oil and gas drilling opportunities
and to optimize reserve recovery.
Statements
in this news release that are not historical facts, including those related to
capital expenditures, future credit facility redeterminations, confidence of
Carrizo's banking consortium in Carrizo's assets and business strategy,
additional available liquidity, and the effectiveness (including timing) of the
expected borrowing base and credit commitment increases, are forward-looking
statements that are based on current expectations. Although Carrizo 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 failure of the lenders to agree to
definitive agreements to effect the expected borrowing base and credit
commitment increases, market and other conditions, capital needs and uses,
commodity price changes, effects of the economic downturn on exploration
activity, results of and dependence on exploratory drilling activities,
operating risks, land issues, weather, and other risks described in Carrizo's
Form 10-K/A for the year ended December 31, 2008 and its other filings with the
Securities and Exchange Commission.