Why Small Cap, Domestic Oil Producer Carrizo Could Yield Huge Gains

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Casey HoerthSeeking Alpha

Their oil properties in the Niobrara of Wyoming and Eagle Ford of southern Texas, are the company’s main driver of growth right now.

Carrizo Oil (CRZO) and Gas is a small-cap Exploration and Production (E&P) company in premier oil locations in the lower 48 United States. You might remember them as natural gas producers, but they began making a major shift to oil in 2010. The company’s remaining natural gas operations are in some of the best areas: the Marcellus and some of the better Barnett acreage in North Texas. Their oil properties are in the Niobrara of Wyoming and Eagle Ford of southern Texas, which is the company’s main driver of growth right now. And perhaps most exciting, Carrizo has been an early mover in the nascent Utica Shale of eastern Ohio, acquiring mineral rights on over 14,000 acres.

This article is about why I believe Carrizo’s assets could be overlooked by the market, particularly when we consider the most recent drop in oil prices. I believe Carrizo could yield huge gains from either being acquired or from oil production growth that is both sustainable and profitable.

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