December 11, 2013 USA Unconventional Overview and UK North Sea Prospects NASDAQ: CRZO Share price: $40 Market cap.: $1.8 billion Enterprise Value: $2.8 billion 3Q 2013 EBITDA: $115 million J. Hollywood
Forward Looking Statements / Note Regarding Reserves Forward Looking Statements The statements contained in all parts of this presentation, including, but not limited to, those relating to our schedule, targets, estimates or results of future drilling, including the number, timing and results of wells, budgeted wells, increases in wells, the timing and risk involved in drilling follow-up wells, pending transactions, expected working or net revenue interests, planned expenditures, prospects budgeted and other future capital expenditures, risk profile of oil and natural gas exploration, acquisition of 3-D seismic data (including number, timing and size of projects), planned evaluation of prospects, probability of prospects having oil and natural gas, expected production or reserves, increases in reserves, acreage, working capital requirements, hedging activities, the ability of expected sources of liquidity to implement the Company s business strategy, future exploration activity, production rates, 2012 drilling program, growth in production, development of new drilling programs, hedging of production and exploration and development expenditures and all and any other statements regarding future operations, financial results, business plans and cash needs and other statements that are not historical facts are forward looking statements. When used in this presentation, the word current refers to the date printed on the cover of the presentation. When used in this presentation, the words anticipate, estimate, expect, may, project, believe and similar expressions are intended to be among the statements that identify forward looking statements. Such statements involve risks and uncertainties, including, but not limited to, those relating to the Company's dependence on its exploratory drilling activities, the volatility of oil and natural gas prices, the need to replace reserves depleted by production, operating risks of oil and natural gas operations, the Company's dependence on its key personnel, factors that affect the Company's ability to manage its growth and achieve its business strategy, technological changes, significant capital requirements of the Company, the potential impact of government regulations, litigation, competition, the uncertainty of reserve information and future net revenue estimates, property acquisition risks, availability of equipment, weather, availability of financing, the results of audits, adverse market conditions and assessments and other factors detailed in the Risk Factors and other sections of the Company's Registration Statement on Form S-3, Prospectus Supplement and Annual Report on Form 10-K for the year ended December 31, 2012 and other filings with the Securities and Exchange Commission ( SEC ). Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement and the Company undertakes no obligation to update or revise any forward-looking statement. We use certain terms in this presentation such as Potential, Potential Reserves, Potential Exposure, Estimated Resource, Unrisked Exploration Potential and Unrisked Reserve Potential, Recoverable and similar terms that the SEC s guidelines strictly prohibit us from including in filings with the SEC. Our Probable (2P) and Possible (3P) reserves do not meet SEC rules and Guidelines (including those relating to pricing) for such reserves. These terms include reserves with substantially less certainty, and no discount or other adjustment is included in the presentation of such reserve numbers. U.S. investors are urged to consider closely the disclosure in our Form 10-K for the year ended December 31, 2012, File No. 000-29187-87, and in our other filings with the SEC, available from us at 500 Dallas, Suite 2300, Houston, Texas, 77002 and in our registration statement. These forms can also be obtained from the SEC by calling 1-800-SEC-0330.
Who is Carrizo? World Class expert at unconventional (shale) plays Drilled over 580 horizontal shale wells Operated 145 wells in 2013 in the Marcellus, Eagle Ford and Niobrara Operating 6 rigs in the Eagle Ford, Marcellus and Niobrara Average horizontal length in reservoir was 1700+ meters, with a recent 3,300 meter horizontal completion (in a 5,000 meter well) and 39 frac stages Horizontal wells are completed with 15 40 frac stages Micro-seismic is often used to optimize fracing Leading expert at drilling in urban and environmentally sensitive areas
Carrizo s Portfolio of Unconventional Assets Niobrara 47,250 net acres 3.5 MMBOE Proved Utica 21,700 net acres Marcellus 49,200 net acres 17.9 MMBOE Proved Eagle Ford 58,000 net acres 54.5 MMBOE Proved 9/30/2013 SEC Proved NPV10 ($MM) Eagle Ford 1,401 Niobrara 104 Marcellus 162 Total 1,667 Notes: Proved reserves as of 09/30/13 based on internal update; pricing as of 09/30/13 SEC pricing. Utica acreage includes Avista acquisition.
Extensive Horizontal Drilling Experience Carrizo Operated Horizontal Wells Drilled by Area
Barnett Shale Horizontal Drilling Performance
Fracing Efficiency Eagleford Horizontal Completion Performance Partnership with Halliburton Design location to handle traffic required to handle 8 stages per day. 24 hours operations 3.8 M pounds of sand/day 60 sand trucks 60,000 bwpd Built custom frac manifold One-time rig up Switch wells remotely
Fracing Efficiency Illustrated Eagleford Horizontal Completion Performance Frac Stages/Well Up -5.0/day in Aug 2011-7.2/day in Aug 2013 Halliburton s Top Rated Crew -By frac stages/day Shared Success -Carrizo s cost/stage down -Halliburton s utilization up 44% -Win-win
Urban Drilling Experience - Barnett Shale Drilled 22 horizontal wells from a single surface location Total pad area of approximately 3.3 acres
Urban Drilling Experience- Barnett Shale
Urban Drilling Experience- Barnett Shale 3D Seismic Application Mapped on Base of Barnett Shale (Viola top)
Unconventional Joint Ventures Lanzhou Haimo Technologies Corp. in the Niobrara Shale (Oct 2012) Sold 10% (6,000 net acres) including 24 producing wells $28 million cash OIL India and Indian Oil Corp. in the Niobrara Shale (Oct 2012) Sold 30% (18,000 net acres) including 24 producing wells $41 million cash and $41 million in development carry Avista Capital Partners in the Utica Shale (Sept 2011) Early stage land acquisition program in Utica condensate zone (50% Avista / 50% Carrizo) Investment budget: $130 $200 million GAIL (India) in Eagle Ford Shale (Sept 2011) 20% of 20,200 acres including 8 producing wells transferred to GAIL $64 million cash and $31 million in development carry Reliance Industries (RIL) in the Marcellus Shale (Aug 2010) Sold 20% of 57,700 acres in PA $13 million cash and $52 million in development carry RIL participating in Marcellus PA development (60% RIL / 40% Carrizo)
Eagle Ford Shale-Well Economic Summary Total Well Cost Type Curve $8.0 MM >550 Future Drilling Locations (12 years) Frac Stages 23.3 Lateral Length 5,600 ft. Gross 495 Mboe EUR Oil Only 395 Mbo Net 370 Mboe 700 650 600 550 500 450 175.0 150.0 125.0 F&D Cost IRR & NPV 1 $100 NYMEX Oil $85 NYMEX Oil $70 NYMEX Oil $21.62 / Boe IRR 87% NPV $9.1MM IRR 57% NPV $6.5 MM IRR 34% NPV $3.9 MM Daily Prod, Bopd 400 350 300 250 200 150 100 50 100.0 75.0 50.0 25.0 Cum. Prod, Mbo Undiscounted Payback @ $85 NYMEX Oil 1.6 years 0 0 60 120 180 240 300 360 420 480 540 600 660 720 Producing Days 0.0 (1) Economics include $3.00/Bbl NYMEX premium & $3.50/Mcf NYMEX gas price; NGL pricing 27% NYMEX oil price. Current Type Curve Daily Current Type Curve Cum
Utica Shale-Well Economic Summary Type Curve >120 Future Drilling Locations (10 years) Total Well Cost $10.1 MM 1,800 400 EUR 1 Gross Condensate Only 1,348 Mboe 455 Mbo 1,600 1,400 350 300 F&D Cost IRR & NPV 2 Net $100 NYMEX Oil $85 NYMEX Oil $70 NYMEX Oil Undiscounted Payback @ $85 NYMEX Oil 1,092 Mboe $9.25 / Boe IRR 85% NPV $14.1 MM IRR 62% NPV $11.0 MM IRR 43% NPV $7.8 MM 1.6 years Daily Prod, Boepd 1,200 1,000 800 600 400 200 0 0 6 12 18 24 Months Daily Cumulative 250 200 150 100 50 0 Cum. Prod, Mboe (1) IP rate of 6 MMcf/d; CGR of 100 Bbls/MMcf and NGLs of 50 Bbls/MMcf; EUR is 34% condensate, 17% NGLs and 49% dry gas (2) Economics includes: 90% NYMEX for condensate, NGL mix @ 50% NYMEX oil (assumes ethane rejection), and 97% NYMEX for gas ($3.50 NYMEX in all cases)
Niobrara Well Economic Summary Type Curve >325 Future Drilling Locations (18 years) Total Well Cost $3.6 MM 800 80 Gross 235 Mboe 700 70 EUR Avg. GOR=1,500 185 Mbo 600 60 F&D Cost Net $100 NYMEX Oil 188 Mboe $19.15 / Boe 56% Daily Prod, Bopd 500 400 300 50 40 30 Cum. Prod, Mbo IRR 1 $85 NYMEX Oil 32% 200 20 100 10 $70 NYMEX Oil 16% Undiscounted Payback @ $85 NYMEX Oil 1.9 years 0 0 6 12 18 24 Months Oil Cum Oil 0 (1) Economics are well only and include $6.50/Bbl NYMEX deduct & $3.50/Mcf NYMEX gas price (1) Assumes differential to NYMEX WTI of minus $8.50/Bbl
Marcellus Shale-Well Economic Summary Superior dry gas economics >10 Future drilling locations Wells performing at or above expectations 9,000 3.6 Increasing seasonal price swings Potential completion cost reduction 8,000 7,000 3.2 2.8 Total Well Cost EUR Gross Net Type Curve $6.8 MM 6.0 Bcf 4.8 Bcf Gas Rate (Mcfd) 6,000 5,000 4,000 3,000 2.4 2.0 1.6 1.2 Cum. Gas (Bcf) F&D Cost $1.42 / Mcf 2,000 0.8 $5.00 NYMEX 79% 1,000 0.4 IRR $4.00 NYMEX 39% 0 0 6 12 18 24 Months 0.0 $3.00 NYMEX 12% Gas Cum. Gas Undiscounted Payback @ $4.00 NYMEX 2.0 years
UK Central North Sea Prospects Manhattan Prospect: Ventura Paleocene Blocks 22/13b, 14d, 18b, 19b Upper Jurassic Fulmar objective Structural/stratigraphic trap Large reserves potential Forties Everest Nelson Manhattan Upper Jurassic Ventura Prospect: Montrose Arbroath Blocks 22/8a, 13b Paleocene Forties objective Structural/stratigraphic trap Moderate reserves potential
Blocks 22/13b, 14d, 18b, 19b- Manhattan Prospect Fulmar/BUJ Depth Structure C.I. = 50 ft. PGS PSTM Time to Depth Stratigraphic (Base) Closure 6,115 acres Structural Closure 1,900 acres Closure: 6,115 ac. Relief: 325 ft. Depth: 12,675 ft. Stratigraphic (Upside) Closure 12,670 acres
Blocks 22/13b, 14d, 18b, 19b- Manhattan Prospect WEST Manhattan Prospect EAST BCU Base Upper Jurassic 22/13b 22/14d
Blocks 22/13b, 14d, 18b, 19b- Manhattan Prospect Schematic Geologic Cross Section: Southwest Northeast 22/18-3 Structural Closure Chalk Smith Bank Forties Gas Discovery Cross Fault Seal Kimm/Heat Fulmar Skagerrak L. Cret. Zechstein Stratigraphic Closure Smith Bank
Blocks 22/13b, 14d, 18b, 19b- Manhattan Summary Traditional Licenses: P1420 Block 22/13b, Carrizo 27.3%, Premier 72.7% (op.) P1801 Blocks 22/14d, 22/18b, 22/19b, Carrizo 100% (op.) Water Depth: 295 ft Geologic Chance: 35% (Charge 0.9, Trap 0.8, Seal 0.7, Reservoir 0.7) Reserves Potential (mmbo): Well Depth: Objective: Site Clearance: STOOIP Reserves P90 31 8 P50 265 84 P10 1,233 440 13,500 ft Upper Jurassic Fulmar Sandstone 2007 site survey revealed no problems Well Timing: Q2 2014 Remaining work programme: None
Block 22/8a, 13b- Ventura Prospect Forties Depth Structure Map C.I. = 20 Ft. Forties Far Offset Amplitude Anomaly on Forties Depth Map C.I. = 20 Ft. 22/8a 22/13b Ventura Amplitude Huntington Field Closure: 1,250 ac. Maximum Relief: 300 ft. Depth: 8,780 ft. Ventura Amplitude
Block 22/8a, 13b- Ventura Prospect S Ventura N Top Forties Forties Channel Approximate Base Forties PreSTM Amplitude Stack Ventura S Top Forties N N PreSTM 30-40 Far Stack Approximate Base Forties S
NE Block 22/8a, 13b- Ventura Prospect Ventura SW Balder Sele PreSTM Amplitude Stack Top Forties Base Forties SW Forties Sand pinch-out provides downdip seal Ventura Forties Sand inter-channel shale provides updip seal NE NE Ventura Channel Complex Channel Complex SW PreSTM Amplitude Stack, Flattened on Sele pick
Block 22/8a, 13b- Ventura Summary Traditional License: P1801 Block 22/8a, Carrizo 100% (op.) Water Depth: 300 ft Geologic Chance: 30% (Reservoir 0.9, Charge 0.8, Seal 0.7, Trap 0.6) Reserves Potential (mmbo): Well Depth: Objective: STOOIP Reserves P90 13 5 P50 77 34 P10 208 113 9,200 ft Paleocene Forties Sandstone Remaining work programme: Drill or drop well to 9,200 ft
UK Southern North Sea Prospects Schooner Ketch Chiswick Monterey Prospect: -Blocks 49/8b -Carboniferous/Leman objectives -Structural trap -Large reserves potential Monterey Stinson Ann Winchester Cutter Markham Grove Stinson Prospect: -Blocks 49/8b -Carboniferous/Leman objectives -Structural trap -Moderate reserves potential N. Viking Carrack Winchester Prospect: -Block 49/8b -Leman objective -Structural trap -Moderate reserves potential
Block 49/8b- Monterey Prospect Base Unconformity Depth Map Windermere Field Monterey Field Stinson Prospect Grandby discovery Winchester Prospect Cutter Field Contour interval= 25 m
Block 49/8b- Monterey Prospect W 49/8-2a well 49/9-5 well E Base Cretaceous Top Zechstein Top Rotliegendes 5 mmcfg/d Leman Sandstone Up to 5 mmcfg/d Westphalian C/D Monterey Discovery Stinson Prospect
Block 49/8b- Monterey Prospect 49/8-2 Well Petrophysical Evaluation 12,240 ft DST 2: Flowed up to 5 mmcfg/d without stabilizing due to formation damage. Note washed out borehole in left column. Skin factor was 9-15 based on second pressure buildup analysis 12,415 ft -Two previous wells on Monterey, 49/8-2 and 49/8-4, have established a gross gas column of about 400 ft in Leman and Carboniferous sands -These wells tested at maximum rates of 2.2-5 mmcfg/d from damaged reservoirs. Neither well was fracture stimulated -It is expected that a combination of horizontal wells and fracture stimulation in multiple zones can achieve commercial flow rates
Block 49/8b- Monterey Summary Traditional License: P2121 Block 49/8b, Carrizo 100% (op.) Water Depth: Geologic Chance: Reserves Potential (bcf): Well Depth: Objective: Site Clearance: 90 ft 100% (proven gas at Monterey) STOOIP Reserves P90 41 6 P50 210 35 P10 500 100 12,500 ft Carboniferous/Leman Sandstones 2005 site survey revealed no problems Remaining work programme: Technical studies, drill or drop well to 11,500 ft
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