HOUSTON, Oct. 29 /PRNewswire-FirstCall/ -- Carrizo Oil & Gas, Inc.
( CRZO) today announced the completion of a redetermination of the
borrowing base for its credit facility. A consortium of six banks has agreed
to increase the availability under the Company's credit facility by
$57.5 million, or 35%, to $222.5 million. Carrizo currently has $120 million
drawn and outstanding under the credit facility. Chief Executive Officer S.
P. "Chip" Johnson, IV stated, "Carrizo's drilling success in the Barnett Shale
and the reserves associated with these wells allowed our banks to
significantly raise our borrowing base availability. With our 2009 Barnett
Shale development plan expected to be largely funded out of cash flow, this
increase in credit will improve our financial flexibility."
Carrizo's next credit facility redetermination is scheduled in the first
quarter of 2009. The Company expects the growth in reserves and new
production resulting from the Company's fourth quarter Barnett development
activity should have a favorable impact on this redetermination.
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 and in proven
onshore trends along the Texas and Louisiana Gulf Coast regions. Carrizo
controls significant prospective acreage blocks and utilizes advanced 3-D
seismic techniques to identify potential oil and gas reserves and drilling
Statements in this news release that are not historical facts, including
those related to funding of development plans, financial flexibility, growth
in reserves, new production and future borrowing base levels, 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 market and other conditions, capital needs
and uses, commodity price changes, effects of the global financial crisis on
exploration activity and other risks described in Carrizo's Form 10-K for the
year ended December 31, 2007 and its other filings with the Securities and
Contact: Carrizo Oil & Gas, Inc.
Richard Hunter, Vice President of Investor Relations
B. Allen Connell, Consultant
Paul F. Boling, Chief Financial Officer
SOURCE Carrizo Oil & Gas, Inc.