11.

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

On October 28, 2010, the Company and certain of its wholly owned subsidiaries (collectively, the "Subsidiary Guarantors") entered into a purchase agreement pursuant to which the Company agreed to sell $400 million 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. On May 4, 2011, two of the Subsidiary Guarantors, CCBM, Inc. and Chama Pipeline Holding LLC, were released from their respective guarantees of the Senior Notes and the Convertible Senior Notes. These entities were subsequently dissolved.

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 June 30, 2011 and December 31, 2010, and for the three and six months ended June 30, 2011 and 2010 on a parent company, combined guarantor subsidiaries, combined non-guarantor subsidiaries, eliminating entries, 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

		00000000000		00000000000		00000000000		00000000000		00000000000
	June 30, 2011
	Parent Company		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS	(In thousands)
Current assets	$	1,136,869	$	45,679	$	9,793	$	(1,105,536)	$	86,805
Property and equipment, net		132,330		888,521		38,789		6,856		1,066,496
Investments in subsidiaries		(127,494)		-		-		127,494		-
Other assets		94,028		69,802		4,190		(70,696)		97,324

Total assets	$	1,235,733	$	1,004,002	$	52,772	$	(1,041,882)	$	1,250,625


LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities	$	85,636	$	1,129,779	$	51,281	$	(1,105,536)	$	161,160
Long-term liabilities		682,468		870		2,338		(69,076)		616,600
Shareholders' equity		467,629		(126,647)		(847)		132,730		472,865

Total liabilities and shareholders' equity	$	1,235,733	$	1,004,002	$	52,772	$	(1,041,882)	$	1,250,625

	December 31, 2010
	Parent Company		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS	(In thousands)
Current assets	$	1,029,000	$	22,733	$	-	$	(991,401)	$	60,332
Property and equipment, net		194,243		784,790		-		4,024		983,057
Investments in subsidiaries		(139,829)		-		-		139,829		-
Other assets		99,876		78,288		-		(77,419)		100,745

Total assets	$	1,183,290	$	885,811	$	-	$	(924,967)	$	1,144,134


LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities	$	85,783	$	1,024,622	$	-	$	(991,401)	$	119,004
Long-term liabilities		644,315		1,018		-		(76,839)		568,494
Shareholders' equity		453,192		(139,829)		-		143,273		456,636


Total liabilities and shareholders' equity	$	1,183,290	$	885,811	$	-	$	(924,967)	$	1,144,134

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

		00000000000		00000000000		00000000000		00000000000		00000000000
	For the Three Months Ended June 30, 2011
	Parent Company		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations		Consolidated
	(In thousands)
Oil and Gas revenues	$	9,389	$	41,283	$	-	$	-	$	50,672
Cost and expenses		21,788		24,237		143		(1,534)		44,634

Operating income (loss)		(12,399)		17,046		(143)		1,534		6,038

Other income and (expense), net		15,242		(8,255)		(1,681)		-		5,306

Income (loss) before income taxes		2,843		8,791		(1,824)		1,534		11,344

Income tax (expense) benefit		(784)		(3,230)		976		(564)		(3,602)
Equity in income (loss) of subsidiaries		4,713		-		-		(4,713)		-

Net income (loss)	$	6,772	$	5,561	$	(848)	$	(3,743)	$	7,742


	For the Three Months Ended June 30, 2010
	Parent Company		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations		Consolidated
	(In thousands)
Oil and Gas revenues	$	8,371	$	24,551	$	-	$	-	$	32,922
Cost and expenses		17,387		12,818		-		(1,073)		29,132

Operating income (loss)		(9,016)		11,733		-		1,073		3,790
Other income and (expense), net		553		(2,243)		-		-		(1,690)

Income before income taxes		(8,463)		9,490		-		1,073		2,100
Income tax (expense) benefit		2,697		(2,629)		-		(383)		(315)
Equity in income (loss) of subsidiaries		6,861		-		-		(6,861)		-

Net income (loss)	$	1,095	$	6,861	$	-	$	(6,171)	$	1,785

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

		00000000000		00000000000		00000000000		00000000000		00000000000
	For the Six Months Ended June 30, 2011
	Parent Company		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations		Consolidated
	(In thousands)
Oil and Gas revenues	$	18,164	$	76,566	$	-	$	-	$	94,730
Cost and expenses		37,969		43,647		143		(2,832)		78,927

Operating income (loss)		(19,805)		32,919		(143)		2,832		15,803
Other income and (expense), net		11,098		(12,081)		(1,681)		-		(2,664)

Income (loss) before income taxes		(8,707)		20,838		(1,824)		2,832		13,139
Income tax (expense) benefit		3,059		(7,656)		976		(1,041)		(4,662)
Equity in income (loss) of subsidiaries		12,334		-		-		(12,334)		-

Net income (loss)	$	6,686	$	13,182	$	(848)	$	(10,543)	$	8,477


	For the Six Months Ended June 30, 2010
	Parent Company		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations		Consolidated
	(In thousands)
Oil and Gas revenues	$	19,599	$	52,279	$	-	$	-	$	71,878
Cost and expenses		31,177		24,338		-		(2,369)		53,146

Operating income (loss)		(11,578)		27,941		-		2,369		18,732
Other income and (expense), net		20,459		(4,658)		-		-		15,801

Income (loss) before income taxes		8,881		23,283		-		2,369		34,533
Income tax (expense) benefit		(3,831)		(8,336)		-		(845)		(13,012)
Equity in income (loss) of subsidiaries		14,947		-		-		(14,947)		-

Net income (loss)	$	19,997	$	14,947	$	-	$	(13,423)	$	21,521

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS


	For the Six Months Ended June 30, 2011
	Parent Company		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations		Consolidated
					(In thousands)
Net cash provided by operating activities	$	18,563	$	56,042	$	(483)	$	-	$	74,122
Net cash used in investing activities		(57,759)		(114,348)		(35,130)		114,121		(93,116)
Net cash provided by financing activities		42,199		65,766		45,124		(114,121)		38,968

Net increase (decrease) in cash and cash equivalents		3,003		7,460		9,511		-		19,974

Cash and cash equivalents, beginning of period		1,418		2,710		-		-		4,128

Cash and cash equivalents, end of period	$	4,421	$	10,170	$	9,511	$	-	$	24,102


	For the Six Months Ended June 30, 2010
	Parent Company		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations		Consolidated
					(In thousands)
Net cash provided by operating activities	$	4,042	$	36,136	$	-	$	-	$	40,178
Net cash used in investing activities		(127,570)		(163,310)		-		124,663		(166,217)
Net cash provided by financing activities		124,954		124,663		-		(124,663)		124,954

Net increase (decrease) in cash and cash equivalents		1,426		(2,511)		-		-		(1,085)
Cash and cash equivalents, beginning of period		1,337		2,500				-		3,837

Cash and cash equivalents, end of period	$	2,763	$	(11)	$	-	$	-	$	2,752