Carrizo Oil & Gas Announces Closing of DJ Basin Divestiture and Partial Redemption of Its 7.50% Senior Notes Due 2020 and 8.875% Redeemable Preferred Stock

HOUSTON–(BUSINESS WIRE)–Carrizo Oil & Gas, Inc. (NASDAQ: CRZO) today announced that
it closed the previously-announced sale of its assets in the DJ Basin on
January 19, 2018. Carrizo received approximately $123 million at
closing, subject to post-closing adjustments; this excludes the
previously-received deposit of $14 million. Additionally, Carrizo could
receive contingent payments of up to $15 million in aggregate based upon
crude oil prices exceeding certain thresholds over the next three years.

On January 19, 2018, Carrizo also delivered a notice to the trustee for
its 7.50% Senior Notes due 2020 (CUSIP No. 144577 AF0) (the “notes”)
under which it called for redemption on February 18, 2018, $100 million
aggregate principal amount of the outstanding notes, representing
approximately 22% of the aggregate principal amount of this series of
outstanding notes.

The notes will be redeemed at a price of 101.875% of the principal
amount thereof plus accrued and unpaid interest on the notes to be
redeemed to the redemption date. Selection of the notes for redemption
will be made by the trustee in accordance with the terms of the
indenture governing such notes based on The Depository Trust Company’s
method that most nearly approximates pro rata selection unless otherwise
required by law; provided, that notes and portions of notes selected
shall be in amounts of $2,000 or whole multiples of $1,000 in excess of
$2,000, except that if all of the notes of a registered holder are to be
redeemed, the entire outstanding amount of notes held by such registered
holder, even if not a multiple of $1,000, shall be redeemed.

David Pitts, Carrizo’s Vice President and CFO, commented on the
announcement, “With the closing of this transaction, we continue to make
progress towards our debt reduction goals. In addition to redeeming
another $100 million of our 7.50% notes, we also exercised our option to
redeem $50 million of our 8.875% Redeemable Preferred Stock. We expect
to receive additional proceeds later this month when our
previously-announced Eagle Ford Shale divestiture closes. We currently
expect to allocate these proceeds to further debt reduction.”

This news release shall not constitute a notice of redemption with
respect to or an offer to purchase or sell (or the solicitation of an
offer to purchase or sell) any securities.

Carrizo Oil & Gas, Inc. is a Houston-based energy company actively
engaged in the exploration, development, and production of oil and gas
from resource plays located in the United States. Our current operations
are principally focused in proven, producing oil and gas plays primarily
in the Eagle Ford Shale in South Texas and the Permian Basin in West
Texas.

Statements in this news release, including but not limited to those
relating to the proposed redemptions, further debt reduction, the
disposition program including the timing and effects of either of them,
amounts or proceeds to be used for the redemptions and other statements
that are not historical facts, are forward-looking statements that are
based on current expectations. Although Carrizo believes that its
expectations are based on reasonable assumptions, it can give no
assurance that these expectations will prove correct. Important factors
that could cause actual results to differ materially from those in the
forward-looking statements include the terms of the redemptions, further
results of the disposition program, other sources and uses of funds for
Carrizo, actions by purchasers and debt and preferred holders,
post-closing adjustment and other payments, results of operations,
market conditions, capital needs and uses and other risks and
uncertainties that are beyond Carrizo's control, including those
described in Carrizo's Form 10-K for the year ended December 31, 2016
and in its other filings with the Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on which such
statement is made, and Carrizo undertakes no obligation to correct or
update forward-looking information.

Contacts

Carrizo Oil & Gas, Inc.
Jeffrey P. Hayden, CFA
VP
– Investor Relations
(713) 328-1044
or
Kim
Pinyopusarerk
Manager – Investor Relations
(713)
358-6430