Carrizo Oil & Gas "outperform," target price raised - update

09/26/07 - RBC Capital Markets

NEW YORK, September 26 (newratings.com) - Analysts at RBC Capital Markets maintain their "outperform" rating on Carrizo Oil & Gas Inc (CRZO). The 12-month target price has been raised from $50 to $51.

In a research note published this morning, the analysts mention that the company has completed its equity offering of 1.8 million shares and, raising net proceeds of $72.1 million. Carrizo Oil & Gas is likely to utilise the proceeds to raise its capital expenditures in order to accelerate the drilling programme at Southeast Tarrant County Barnett Shale, drilling of the appraisal well in the North Sea and improved financial flexibility during 2008, the analysts say. The NAV estimate has been raised to $46.25 to reflect the acceleration of drilling at the Barnett Shale play, RBC Capital Markets adds.