Carrizo Oil & Gas (ticker: CRZO) sports over 160,000 net acres across the Eagle Ford, Delaware basin, and Niobrara—with an inventory of over 2,000 net horizontal drilling locations. The company also has non-core assets in the Marcellus and Utica formations.
The majority of the company’s acreage is in the Eagle Ford at approximately 103,300 net acres with over 1,200 net potential drilling locations. The company’s Delaware position numbers 26,100 net acres with over 240 potential drilling locations. The company’s last set of assets in the Niobrara number approximately 31,200 net acres, with over 640 potential drilling locations.
Between those three basins, Carrizo has drilled over 800 horizontal wells, which produced approximately 46,367 BOEPD during Q1, 2017.
As of 2017, the majority of Carrizo’s allocated capital expenditure budget was dedicated to drilling and completions in the company’s Eagle Ford assets. The company allocated $410 million to the Eagle Ford, $45 million to the Delaware, $30 million to miscellaneous other drilling and completion activities, and the remaining $55 million to pipeline and infrastructure expenditures.
For 2017, the company has a three-rig development program for the Eagle Ford, with the intent to further delineate and develop its Delaware assets.
Eagle Ford assets
Carrizo’s Eagle Ford assets sit comfortably in the volatile-oil window of the formation, with approximately 523 gross (462 net) wells drilled. The company can bring additional production on with the presence of 30 gross (27 net) wells waiting on completion. In 2017, the company intends to drill 106 gross (91 net) wells, and frac 94 gross (85 net) wells.
The company is undergoing tests to determine optimal spacing between lateral wells. The initial spacing was approximately 330 feet between laterals, and the company is now testing between 165 feet and 285 feet. Five of these ‘stagger stack’ pilots are either online or being drilled and completed—as of June, 2017.
Carrizo is also pursuing infill drilling tests, with success showing in its Irvin 1H wells, which was drilled between two older wells. New developments have been made in the company’s completions design, with a decrease in stage spacing to 200 feet from 240 feet—and additional testing occurring with 175 to 180 foot spacing. The new spacing has been tested on 28 completed wells with the new design resulting in an average of 18% jump in performance.
Delaware basin and acquisition
In its Delaware basin assets, Carrizo has drilled eight net wells, and has one well waiting on completion to date—targeting the Wolfcamp formation. For 2017, the company intends to drill six net wells, and fracture 6 gross (5 net) wells.
The company’s Delaware assets recently grew to 42,600 acres with the acquisition of approximately 23,600 gross acres in late June, 2017. The acquisition was made for $648 million in cash from ExL Petroleum Management. The new assets produce approximately 8,000 BOEPD alone, from eleven wells.
The acreage itself is reasonably continuous, with Carrizo predicting that its average well lateral will be 7,300 feet.
Carrizo Oil & Gas, Inc. is presenting at EnerCom’s The Oil & Gas Conference® 22
Carrizo will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.
The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors. The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.
