Carrizo Looks Good After Results of 1st Utica Well
From Seeking Alpha:
Carrizo Oil & Gas' (CRZO) first Utica well, the Rector 1H in Guernsey County of Ohio, came on strong and oily: ~2,800 Boe/d, 60% condensate. The long anticipated test result was announced this morning.
A strong well is not a particular surprise given the favorable location of the drill site in the condensate window. The IP rate is in line with a number of other impressive wells drilled in the vicinity and "on trend" by PDC Energy (PDCE), Antero Resources (AR) and Gulfport Energy (GPOR). However, the positive outcome is important from Carrizo stock's perspective as it validates the company's ability to execute in a play were it still has to prove itself as operator.
Carrizo has a total of 21,700 net acres in the Utica, most of which are located in the prime section of the condensate fairway. While the position may appear relatively small, the acreage's high quality makes it significant nonetheless and meaningful from the stock's valuation perspective.
The company plans to bring a drilling rig into the Utica in early Q2 to begin its 2014 drilling program and expects to maintain a 1-rig program in the play for the balance of the year.