9 Dec 2010drilling progress report● NeutralMajor
Carrizo reported early Eagle Ford results: its first two wells produce about 1,260 barrels of oil a day combined, and a third well flowed 1,035 barrels of oil a day in a 24-hour test. Its Niobrara drilling is proceeding, with first results expected before year-end. Fourth-quarter production is now estimated at 114 Mmcfe/d, about 5% below prior guidance, due to continued Barnett connection delays, though the roughly 127 Mmcfe/d year-end exit rate is still expected if hookups are on schedule. The company also expects the lenders to be advised to cut the $350 million borrowing base, and says the UK government approved the Huntington Field development, with first production expected in Q1 2012 and about $50 million of 2011 spending.