Carrizo Oil & Gas Inc. has provided an operational update, which included the following highlights:
- Estimated 3Q crude oil production of 23 573 Bbls/d, 4% above the high-end of the guidance range.
- Raising 2015 crude oil production growth target to 21%.
- Added 8000 bpd of swaps for 2016 at a weighted average price of approximately US$60/bbl.
Production volumes during the third quarter of 2015 are estimated to be 35 948 boe/d. This represents an increase of 7% versus the third quarter of 2014 and exceeds the high-end of the Company's guidance range of 33 133 - 34 300 boe/d. Oil production during the third quarter of 2015 is estimated to be 23 573 bbls/d, an increase of 18% versus the third quarter of 2014; natural gas and NGL production are estimated at 51 710 million ft3/d and 3757 bpd, respectively, for 3Q15.
Given the continued strong performance from the Company's primary operating areas, Carrizo is increasing its 2015 oil production guidance to 22 750 – 22 850 bbls/d from 22 350 – 22 500 bbls/d. Using the midpoint of this range, the Company's 2015 oil production growth guidance increases to 21% from 19% previously. For natural gas and NGLs, the Company is increasing its 2015 guidance to 56 - 57 million ft3/d and 3500 - 3600 bpd, respectively, from 54 - 56 milion ft3/d and 3250-3350 bpd/d.
Since 30 June 2015, the Company has added additional crude oil hedges covering calendar 2016 volumes. For 2016, Carrizo now has hedges covering approximately 13 500 bpd of crude oil (comprised of 8000 bpd of swaps at an average price of US$60.03/Bbl and 5492 bpd of collars with a weighted average floor price of US$50.97/Bbl and a weighted average ceiling price of US$74.73/Bbl). Additionally, Carrizo will continue to get the benefit from the offsetting hedge transactions it entered into during the 1Q15; these transactions locked in an additional US$44.8 million of cash flow that will be realised during 2016.
Edited from press release by Angharad Lock