Carrizo Oil and Gas
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| It owned a 12% working interest in each. Stone had drilled and logged the Loomis #1 and Stang #1 wells. The log results had met predrill expectations, and the wells were to be completed and production tested at a later date. | It owned a 12% working interest in each. Stone had drilled and logged the Loomis #1 and Stang #1 wells. The log results had met predrill expectations, and the wells were to be completed and production tested at a later date. | ||
| - | According to a November, 2009 status update, the first [[Horizontal drilling|horizontal]] well Carrizo was to participate in, the Loomis #4h, was being designed and to spud by year-end. It had been located on the basis of [[seismic data]]. The Carrizo/Avista JV had also been active in West Virginia where it had been drilling the Geary #4 which was approaching its total depth. Carizzo also had a second rig there that was in the process of drilling Lee #1. At the same time, well pads were being cleared for Carrizo's next three wells in the area. All three were to spud before the end of 2009. | + | According to a November, 2009 status update, the first [[Horizontal drilling|horizontal]] well Carrizo was to participate in, the Loomis #4h, was being designed and to spud by year-end. It had been located on the basis of [[seismic data]]. The Carrizo/Avista JV had also been active in West Virginia where it had been drilling the Geary #4 which was approaching its total depth. Carrizo also had a second rig there that was in the process of drilling Lee #1. At the same time, well pads were being cleared for Carrizo's next three wells in the area. All three were to spud before the end of 2009. |
Revision as of 23:33, 10 November 2009
Houston, Texas-based Carrizo Oil and Gas (NASDAQ GS: CRZO) is an oil and gas exploration and production company.
In August, 2008 Carrizo announced that its Marcellus shale leasehold consisted of leases and options amounting to 80,000 net acres.
By November, 2008 Carrizo released news of a joint venture with the private equity firm, Avista Capital Partners, named ACP II Marcellus LLC (aka Carrizo/Avista JV). The two companies planned to invest $150 million in acquiring and developing Marcellus shale acreage in its leasehold. By March, 2009, the company's leasehold had gone over 200,000 net acres. The partners' participating interests in developing this acreage was to be on a 50/50 basis.
A January, 2009 report indicated Carrizo had drilled two Marcellus wells by the end of 2008. It also had applied for permits to drill seven more Marcellus wells. The company planned to drill a well in March, 2009 in Clearfield County, Pennsylvania. It was announced in March, 2009 that the partners were to drill ten vertical Marcellus wells in 2009.
In a May, 2009 update the company announced it was in the process of finishing the drilling an 8,600 ft. deep vertical test well in Centre County, PA. Well cores and drilling logs were being studied to design a fracture stimulation plan. Update: In August, 2009 it was reported that Carrizo had finished the frac on this well. Once the well had been completed, the company intended to test it for an extended period before planning a pipeline route for it. The nearest large pipeline is six miles from the well site. The total cost of the well was to be approximately $2 million. This well had been drilled before all others due to the need to meet a contractual obligation to a partner. Once the well had been drilled, the obligation was met.
A further report in mid-May, 2009 noted that in December, 2008 Carrizo had been approved by the city council of DuBois in Clearfield County, Pennsylvania to drill Marcellus depth gas wells on the watershed of the Anderson Creek Reservoir located in Union Township, PA. The DuBois council was also looking into the possibility of drilling on the Reservoir itself.
The company had applied for permits for five vertical wells in Northern West Virginia to test its acreage there. At the time, it was not pursuing any new Marcellus leasing except in Susquehanna County, Pa. where it owns approximately 12,000 acres with partners. Carrizo was looking into a possible joint venture or farm-out agreement for its West Virginia acreage. (See updates below). Update: In August, 2009 it was announced that drilling on the five West Virginia wells was scheduled to begin in October, and that the drilling would proceed back-to-back fashion until all five wells were complete. There was to be a range of depths for the wells from 4,000 feet to 9,000 feet. The cost: $1.5 million per well.
The company also controls acreage in Wayne County, PA and Cuyahoga County, New York.
Carrizo planned to drill the five West Virginia wells during the summer months of 2009. The locations selected were based upon well control and 2-d seismic testing. The company has acreage in four different counties in West Virginia. Horizontal drilling awaited the results of the aforementioned vertical well program. However, the same company update also mentioned that the company potentially could go directly to drilling horizontal wells in Susquehanna County, Pa. In that case 3-d seismic would still first be undertaken. The update mentioned that the pipeline infrastructure available to Carrizo was at its best in West Virginia, but still under construction in Susquehanna County, and only just adequate for a couple of vertical wells in Centre County, Pa.
Reportedly, by July, 2009, using $71 million of financial partner Avista's capital, Carrizo had expanded its Marcellus leasehold to 212,000 acres. The company had focused on leasing in Bradford and Susquehanna Counties, PA. It had leased 30,000 acres there and had another 20,000 in negotiation. Carrizo leased 112,000 acres in West Virginia and held 70,000 acres in the central Pennsylvania counties of Centre, Clearfield, and Clinton. Netting out Avista's 50% share, Carrizo had holdings of 103,000 acres that were prospective for Marcellus shale. Update: In August, 2009 it was announced that Carrizo would defer drilling in northeastern PA until the availability of 3-D seismic data in 2010.
According to an August, 2009 report, Carrizo had filed notices with the Susquehanna River Basin Commission for withdrawal of up to 720,000 gallons per day from Mosquito Creek in Clearfield County, PA. The water was to be used for Marcellus shale and Utica shale gas drilling.
An October, 2009 Carrizo company update stated that during the third quarter of 2009 the Carrizo/Avista JV worked with Stone Energy to drill two wells in Susquehanna County, PA. It owned a 12% working interest in each. Stone had drilled and logged the Loomis #1 and Stang #1 wells. The log results had met predrill expectations, and the wells were to be completed and production tested at a later date.
According to a November, 2009 status update, the first horizontal well Carrizo was to participate in, the Loomis #4h, was being designed and to spud by year-end. It had been located on the basis of seismic data. The Carrizo/Avista JV had also been active in West Virginia where it had been drilling the Geary #4 which was approaching its total depth. Carrizo also had a second rig there that was in the process of drilling Lee #1. At the same time, well pads were being cleared for Carrizo's next three wells in the area. All three were to spud before the end of 2009.
- S. P. "Chip" Johnson, IV is President and CEO of Carrizo Oil and Gas.
- Paul F. Boling is Vice President, CFO, Secretary and Treasurer.
- J. Bradley Fisher is the company's Vice President and COO.
- Richard Hunter is Vice President of Investor Relations.
