On February 24, 2015 Carrizo Oil and Gas held a Q4 and year end 2014 results earnings call. During the call the company reported a record 22,130 barrels per day production, an increase of 11% from the prior quarter and exceeding the high-end of their guidance due primarily to the strong performance from their Eagle Ford assets.
The company reported that “in the Niobrara Formation, Carrizo drilled 8 gross (4.2 net) operated wells during the fourth quarter, and completed 5 gross (1.8 net) wells. Crude oil production from the Niobrara was approximately 2,300 Bbls/d for the quarter, roughly flat with the prior quarter. Carrizo is currently operating one rig in the Niobrara and expects to drill 12 gross (4 net) operated wells during 2015. The Company also expects to continue to participate with Whiting and Noble in high-density projects in the play within its core area.”
During the Carrizo Oil & Gas Fourth Quarter and Year End Conference Call, President and CEO Chip Johnson said that “In the Niobrara we are producing from a 112 gross wells with 46 net wells, 7 gross with 3.7 net wells waiting on completion at the end of the quarter, representing about a 1000 net BOPD of potential initial production. During the fourth quarter, we confirmed 40-acre spacing in the B bench in Area 1 and part of Area 2 as a result we added about 75 net locations toward drilling into and deploying. We have minimal drilling commitments in the Niobrara during 2015, so we have elected to reduce activity in this play given the current commodity price environment.”
In response to a question on the company’s break even price for the Niobrara by Analyst Dan McSpirit from BMO Capital Markets, Andy Agosto, VP of Business Development said that “What we said at Analyst Day average about 57 bucks for areas one and two. But within that our best area, area one, is about $48”