2010-01-12-2009-12-15-2009-12-15

Purchased 12.5% WI in TX Barnett shale development project in Tarrant Co., gaining 1.25 MMcf/d.

Tokyo-based Sumitomo Corp. via subsidiary Pacific Summit Energy LLC has acquired a minority working interest in the Barnett shale of North Texas from Carrizo Oil & Gas Inc., Houston, (Nasdaq: CRZO) for $15.7 million, marking the first time a Japanese company has participated in a shale-gas venture. The assets include a 12.5% interest in 16 Barnett drilling units in Denton and Tarrant counties, including six recently completed wells with a current production rate net to Sumitomo of 1.25 million cubic feet per day. As part of this agreement, Sumitomo will participate on a promoted basis in the completion of 18 drilled wells and the drilling and completion of 12 more wells. In addition, Sumitomo has the right to participate, on a promoted basis and at the same working interest, in up to 56 future wells within these units. Carrizo president and chief executive S.P. "Chip" Johnson IV says, "We view Sumitomo as a strong partner that will permit us to opportunistically accelerate drilling in our core Barnett shale development area. We believe that this joint-venture relationship with Sumitomo also has the potential to expand into other exciting resource plays as well." Carrizo holds interests in the Barnett shale in North Texas, the Marcellus shale in Appalachia, and in other trends along the Texas and Louisiana Gulf Coast regions. Sumitomo holds E&P interests in the North Sea.