Letter from President Spaniolo

September 2, 2009

To the University Community:

I am pleased to update you on our recent progress and future activity at the natural gas site at The University of Texas at Arlington.

Since January, Carrizo Oil & Gas, Inc., has been engaged in the process of drilling several additional horizontal wells at the site at the southeast corner of our campus. To date, Carrizo has drilled eight wells in addition to the six wells already in production. Carrizo anticipates drilling another four to seven wells, while the drilling rig is on location, for a total of 18 to 21 wells at the site.

The primary beneficiaries of royalties from these new wells will be the property owners to the south and east of campus who have signed leases with Carrizo—including the Arlington Independent School District, the City of Arlington, and numerous commercial and individual property owners.

Once the drilling phase is complete on these wells, Carrizo will begin the "fracing" process, which is currently scheduled to take place in the first quarter of 2010. We expect those wells to be completed and in production during the second quarter of 2010.

I am also pleased to report that the six wells that went into production in late 2008 have generated more than $3 million in royalties for the University, despite the downturn in natural gas markets. Many of our neighbors in the College Hills area and other neighborhoods also have been receiving royalties on those wells from Carrizo.

The University remains committed to investing these natural gas royalties in student undergraduate scholarships and graduate fellowships, faculty and staff recruitment and retention, and the campus master plan. These funds are being leveraged with private gifts through the Maverick Match program to achieve maximum potential. In its first nine months, the Maverick Match already has benefited 21 endowments.

As our natural gas program progresses, we will continue to communicate with you on a regular basis. Please understand that all schedules are subject to change, but our Web site always will include the latest news and updated information. And of course, you're welcome to contact me directly anytime at jds@uta.edu.

Should you have any questions regarding leases or royalties, please contact Carrizo Oil & Gas, Inc., at 817‑419‑7352.

Thank you for your ongoing support of this important project.

Sincerely,

James D. Spaniolo
President
The University of Texas at Arlington