DEBT

Debt consisted of the following at June 30, 2011 and December 31, 2010:

		0000000000000		0000000000000
	June 30, 2011		December 31, 2010
	(In thousands)
Senior Notes	$	400,000	$	400,000
Unamortized discount for Senior Notes		(2,627)		(2,751)
Convertible Senior Notes		73,750		73,750
Unamortized discount for Convertible Senior Notes		(5,114)		(6,405)
Senior Secured Revolving Credit Facilities		141,000		93,500
Senior Secured Multicurrency Credit Facility		-		-
Other		-		160

		607,009		558,254
Less: Current maturities		-		(160)

	$	607,009	$	558,094

Prior Senior Secured Revolving Credit Facility

Prior to January 27, 2011, the Company had a senior secured revolving credit facility (the "Prior Credit Facility") with Wells Fargo Bank, N.A., as administrative agent. In connection with the Company's entrance into a new senior secured revolving credit facility with an increased borrowing capacity and extended maturity as discussed below, on January 27, 2011, the Company repaid its full indebtedness outstanding under the senior credit agreement governing the Prior Credit Facility and terminated such senior credit agreement. As a result, the Company recognized a $0.9 million non-cash pre-tax loss on extinguishment of debt, related to the deferred financing costs attributable to the commitments of two banks in the Prior Credit Facility who are not participating in the new credit facility.

Senior Secured Revolving Credit Facility

On January 27, 2011, the Company entered into a new $750 million secured revolving credit facility with a five-year term ("Revolving Credit Facility") with BNP Paribas as the administrative agent, sole book runner and lead arranger. The Revolving Credit Facility provides for a borrowing capacity up to the lesser of (i) the Borrowing Base (as defined in the senior credit agreement governing the Revolving Credit Facility) and (ii) $750 million. The Revolving Credit Facility matures on January 27, 2016. It is secured by substantially all of the Company's assets and is guaranteed by certain of the Company's subsidiaries. The initial Borrowing Base under the Revolving Credit Facility was $350 million. Subsequent to the sale of certain of the Company's non-core Barnett Shale properties in the second quarter of 2011 described in Note 4. Property Plant and Equipment, the Borrowing Base availability under the Revolving Credit Facility was reduced from $350 million to $300 million. On June 10, 2011, the Borrowing Base availability was raised to $340 million after completing the regular semi-annual Borrowing Base redetermination. The next Borrowing Base redetermination is currently expected to occur on or before November 1, 2011.

The annual interest rate on each base rate borrowing is (a) the greatest of the Prime Rate, the Federal Funds Effective Rate plus 0.5% and the adjusted LIBO rate for a three-month interest period on such day plus 1.00%, plus (b) a margin between 1.00% and 2.00% (depending on the then-current level of borrowing base usage). The interest rate on each Eurodollar loan will be the adjusted LIBO rate for the applicable interest period plus a margin between 2.00% to 3.00% (depending on the then-current level of borrowing base usage).

The Company is subject to certain covenants under the terms of the Revolving Credit Facility which include, but are not limited to, the maintenance of the following financial covenants: (1) a ratio of Total Debt to EBITDA of not more than (a) 4.75 to 1.00 for fiscal quarters ending June 30, 2011 through December 31, 2011, (b) 4.25 to 1.00 for fiscal quarters ending March 31, 2012 through June 30, 2012 and (c) 4.00 to 1.00 for fiscal quarters ending September 30, 2012 and thereafter; (2) a current ratio of not less than 1.0 to 1.0; (3) a Senior Debt to EBITDA ratio of not more than 2.50 to 1.00; and (4) an EBITDA to Interest Expense ratio of not less than 2.50 to 1.00. At June 30, 2011, the ratio of Total Debt to EBITDA was 3.30 to 1.00, the current ratio was 1.81 to 1.0, the Senior Debt to EBITDA ratio was 0.79 to 1.00 and the EBITDA to Interest Expense ratio was 4.73 to 1.00. Because the calculation of the financial ratios are made as of a certain date, the financial ratios can fluctuate significantly period to period as the amounts outstanding under the Revolving Credit Facility are dependent on the timing of cash flows related to operations, capital expenditures, sales of oil and gas properties and securities offerings. At June 30, 2011, the Company had $141 million of borrowings outstanding under the Revolving Credit Facility with a weighted average interest rate of 2.81%. At June 30, 2011, the Company also had $0.4 million in letters of credit outstanding which reduced the amounts available under the Revolving Credit Facility. Future availability under the $340 million borrowing base is subject to the terms and covenants of the Revolving Credit Facility. The Revolving Credit Facility is used to fund ongoing working capital needs and the remainder of the Company's capital expenditure plan only to the extent such amounts exceed the cash flow from operations, proceeds from the sale of oil and gas properties and securities offerings.

UK Huntington Limited Recourse Credit Facility

From issuance through June 30, 2011, no amounts were outstanding under the Company's Senior Secured Multicurrency Credit Facility (the "Huntington Facility") and no letters of credit had been issued.

During the first quarter of 2011, the Company made an equity contribution of approximately $22 million to Carrizo UK Huntington Ltd. ("Carrizo UK"). At June 30, 2011, Carrizo UK has a cash balance of $9.5 million which represents the remaining portion of the equity contribution. Initial borrowings under the Huntington Facility are conditioned on, among other things, the Company's prior utilization of the equity contribution on normal business operations in the UK North Sea.

The annual interest rate on each borrowing is (a) LIBOR (EURIBOR for euro-denominated loans) for the applicable interest period, plus (b) a margin of (i) 3.50% until the completion of the Huntington Field development project and 3.0% thereafter for the term loan credit facility and post-completion revolving credit facility or (ii) 4.75% for the cost overrun facility.