Cash interest expense, net of amounts capitalized, increased to $13.7 million for the first quarter of 2013 as compared to $9.4 million for the first quarter of 2012. The increase was primarily attributable to interest on the $300.0 million aggregate principal amount of our 7.50% Senior Notes issued in the third quarter of 2012 partially offset by a decrease in interest expense attributable to reduced borrowings outstanding under the U.S. revolving credit facility during the first quarter of 2013.
An unrealized loss on derivatives of $21.2 million was recorded for the first quarter of 2013 as compared to an unrealized loss on derivatives of $7.4 million for the first quarter of 2012 due to the change in fair value of our open derivative positions during those periods.
Non-cash, stock-based compensation expense of $6.5 million was recorded for the three months ended March 31, 2013 as compared to $4.0 million for the first quarter of 2012. The increase was primarily driven by an increase in the fair value of cash-settled stock appreciation rights as the increase in the stock price during the first quarter of 2013 was greater than the increase in stock price during the same period of 2012.
The estimated annual effective income tax rates for 2013 and 2012 were 36.5% and 36.7%, respectively.
Effective April 29, 2013, Carrizo's banking syndicate, led by Wells Fargo as administrative agent, agreed to increase the commitments under its senior credit facility to $530 million from $365 million, representing an increase of $165 million. This occurred as part of the Company's regularly scheduled borrowing base review. In addition, two new banks have joined the syndicate, increasing it to twelve bank members. Currently, the revolving credit facility is undrawn.
S.P. "Chip" Johnson, IV, President and CEO of Carrizo commented on the quarter's results, "Strong performance in our Eagle Ford Shale and Niobrara Formation projects continues to drive outstanding Company results. Our focus on execution of our development plans allowed us to exceed both oil and gas production guidance while staying within our guidance for drilling and completion spending.
"Oil production exceeded our guidance primarily due to well performance in both our Eagle Ford and Niobrara plays. Gas production exceeded forecast primarily due to higher than expected Marcellus production resulting from changes in our completion schedule which allowed for reduced downtime on offsetting producing pads.
"During the quarter we were able to add a little over 4,300 net new bolt-on acres to our Eagle Ford position in La Salle County, TX at an attractive price due to near-term lease expirations. We immediately moved one of our three rigs onto these leases in order to hold the acreage. In the second quarter we will initiate the investigation of further Eagle Ford downspacing from our current 750 feet between laterals by drilling two wells with approximately 500 feet between well bores. We expect to complete and test these wells in the third quarter. We plan to complete and test our horizontal well drilled to evaluate the Pearsall potential below our Eagle Ford acreage in May.
"We have finished construction of the drilling pad in Guernsey County, Ohio for our first Utica Shale well and expect to spud the well in July or August. We now control about 14,600 net acres in the liquids-rich southern Utica.
"We are pleased with the approval of the $530 million borrowing base by our bank syndicate which we believe is a firm vote of confidence in our underlying asset base and business strategy. While we welcome the additional capital flexibility, it does not change our 2013 spending plans."
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