Carrizo Oil & Gas Inc., Houston, (Nasdaq: CRZO) is nearing the point where it will be able to self-finance its Barnett shale program and is continuing drilling operations  in the North Sea and Pennsylvania, according to Pritchard Capital Partners LLC senior analyst Ray Deacon.

Deacon says the company has six rigs drilling in the Barnett and recently completed Energy Transfer Partners LP, Dallas, (NYSE: ETP) pipelines “mean visibility in production growth to 100 million cubic feet per day, possibly by year-end, which is positive news.”

He adds that first production from its North Sea wells could begin as early as year-end 2010, pending a contract with a floating production and supply operator.

“Carrizo will soon spud its first horizontal Appalachia well as a nonoperator,” Deacon says. “It will be a horizontal Trenton Black River test.”

He adds that the company has four permits in Pennsylvania and upstate New York with E&P activity in the Marcellus shale expected to begin in the fourth quarter. Also, the company is putting together a 10-well program in northern West Virginia.

“The company has $75 million drawn on its $165-million credit line and is being cautious regarding its banks’ ability to maintain current lending lines,” Deacon says. “Assuming no credit for the North Sea reserves, we think the shares represent a very attractive risk/reward at current levels based on an $8-per-MMBtu long-term gas price.” JAS