10.

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

In November 2010 and November 2011, the Company and certain of the Company's wholly owned subsidiaries (such subsidiaries collectively, the "Subsidiary Guarantors") issued in private placements $400.0 million and $200.0 million, respectively, aggregate principal amount of the Company's Senior Notes. Certain, but not all, of the Company's wholly owned subsidiaries have issued full, unconditional and joint and several guarantees of the Senior Notes and may guarantee future issuances of debt securities. In connection with both offerings, the Company subsequently filed Form S-4 Registration Statements with the SEC to exchange the previously issued privately placed notes for notes registered under the Securities Act of 1933, as amended.

The rules of the SEC require that condensed consolidating financial information be provided for a subsidiary that has guaranteed the debt of a registrant issued in a public offering, where the guarantee is full, unconditional and joint and several and where the voting interest of the subsidiary is 100% owned by the registrant. The Company is, therefore, presenting condensed consolidating financial information as of March 31, 2012 and December 31, 2011, and for the three months ended March 31, 2012 and 2011 on a parent company, combined guarantor subsidiaries, combined non-guarantor subsidiaries and consolidated basis and should be read in conjunction with the consolidated financial statements. The financial information may not necessarily be indicative of results of operations, cash flows, or financial position had the Subsidiary Guarantors operated as independent entities.

Investments in subsidiaries are accounted for by the respective parent company using the equity method for purposes of this presentation. Results of operations of subsidiaries are therefore reflected in the parent company's investment accounts and earnings. The principal elimination entries set forth below eliminate investments in subsidiaries and intercompany balances and transactions. Typically in a condensed consolidating financial statement, the net income and equity of the parent company equals the net income and equity of the consolidated entity. The Company's oil and gas properties are accounted for using the full cost method of accounting whereby impairments and DD&A are calculated and recorded on a country by country basis. However, when calculated separately on a legal entity basis, the combined totals of parent company and subsidiary impairments and DD&A can be more or less than the consolidated total as a result of differences in the properties each entity owns including amounts of costs incurred, production rates, reserve mix, future development costs, etc. Accordingly, elimination entries are required to eliminate any differences between consolidated and parent company and subsidiary company combined impairments and DD&A.

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS


	March 31, 2012
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets	$	1,482,390		$	95,939		$	2,047	$	(1,448,086	)	$	132,290
Property and equipment, net		129,459			1,266,215			81,841		7,804			1,485,319
Investments in subsidiaries		(41,003	)		—			—		41,003			—
Other assets		27,634			45,767			10,149		(1,630	)		81,920

Total assets	$	1,598,480		$	1,407,921		$	94,037	$	(1,400,909	)	$	1,699,529

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities	$	172,047		$	1,504,038		$	3,754	$	(1,392,387	)	$	287,452
Long-term liabilities		853,824			2,362			32,805		—			888,991
Shareholders' equity		572,609			(98,479	)		57,478		(8,522	)		523,086

Total liabilities and shareholders' equity	$	1,598,480		$	1,407,921		$	94,037	$	(1,400,909	)	$	1,699,529


	December 31, 2011
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets	$	1,349,841		$	71,018		$	3,874	$	(1,304,336	)	$	120,397
Property and equipment, net		101,015			1,131,672			68,911		8,916			1,310,514
Investments in subsidiaries		(58,764	)		—			—		58,764			—
Other assets		38,853			54,062			9,133		(5,279	)		96,769

Total assets	$	1,430,945		$	1,256,752		$	81,918	$	(1,241,935	)	$	1,527,680

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities	$	150,793		$	1,368,456		$	4,366	$	(1,252,295	)	$	271,320
Long-term liabilities		724,801			2,183			22,429		(2,908	)		746,505
Shareholders' equity		555,351			(113,887	)		55,123		13,268			509,855

Total liabilities and shareholders' equity	$	1,430,945		$	1,256,752		$	81,918	$	(1,241,935	)	$	1,527,680

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS


	For the Three Months Ended March 31, 2012
	Parent Company			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Oil and gas revenues	$	6,789		$	73,926		$	—		$	—		$	80,715
Cost and expenses		14,547			42,678			78			1,111			58,414

Operating income (loss)		(7,758	)		31,248			(78	)		(1,111	)		22,301
Other income and (expense), net		1,127			(7,546	)		(2,441	)		—			(8,860	)

Income (loss) before income taxes		(6,631	)		23,702			(2,519	)		(1,111	)		13,441
Income tax (expense) benefit		2,321			(8,296	)		1,216			741			(4,018	)
Equity in income (loss) of subsidiaries		14,103			—			—			(14,103	)		—

Net income (loss)	$	9,793		$	15,406		$	(1,303	)	$	(14,473	)	$	9,423


	For the Three Months Ended March 31, 2011
	Parent Company			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Oil and gas revenues	$	8,775		$	35,283		$	—		$	—		$	44,058
Cost and expenses		16,181			19,410			—			(1,298	)		34,293

Operating income (loss)		(7,406	)		15,873			—			1,298			9,765
Other income and (expense), net		(4,144	)		(3,826	)		—			—			(7,970	)

Income before income taxes		(11,550	)		12,047			—			1,298			1,795
Income tax (expense) benefit		3,843			(4,426	)		—			(477	)		(1,060	)
Equity in income (loss) of subsidiaries		7,621			—			—			(7,621	)		—

Net income (loss)	$	(86	)	$	7,621		$	—		$	(6,800	)	$	735

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS


	For the Three Months Ended March 31, 2012
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by operating activities	$	31,279		$	53,607		$	(1,644	)	$	—		$	83,242
Net cash used in investing activities		(189,383	)		(178,270	)		(13,474	)		154,206			(226,921	)
Net cash provided by financing activities		139,137			140,091			14,114			(154,206	)		139,136

Net increase (decrease) in cash and cash equivalents		(18,967	)		15,428			(1,004	)		—			(4,543	)
Cash and cash equivalents, beginning of period		19,134			7,263			1,715			—			28,112

Cash and cash equivalents, end of period	$	167		$	22,691		$	711		$	—		$	23,569


	For the Three Months Ended March 31, 2011
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by operating activities	$	28,724		$	23,553		$	—		$	—		$	52,277
Net cash used in investing activities		(90,639	)		(77,001	)		(6,469	)		75,167			(98,942	)
Net cash provided by financing activities		64,493			53,092			22,075			(75,167	)		64,493

Net increase (decrease) in cash and cash equivalents		2,578			(356	)		15,606			—			17,828
Cash and cash equivalents, beginning of period		1,418			2,710			—			—			4,128

Cash and cash equivalents, end of period	$	3,996		$	2,354		$	15,606		$	—		$	21,956