Carrizo Oil & Gas Inc., Houston, has completed its acquisition of 6,820 net acres primarily in LaSalle, Atascosa, and McMullen counties, Tex., part of the Eagle Ford shale, from Eagle Ford Minerals LLC (EFM) for $250 million in cash.
The acreage, 100% operated by Carrizo, is in the RPG, Irvin Ranch, and Pena project areas, centrally located in what Carrizo describes as the most prospective portion of Eagle Ford’s volatile oil window, with some of the highest EURs and IRRs of Carrizo's Eagle Ford portfolio.
During the third quarter, net production from 81 gross wells on the acreage totaled 2,670 boe/d, 85% of which was oil. Carrizo’s internal estimates show net proved reserves of 16.7 million boe, of which 82% is oil and 34% is developed.
The company’s overall position in the Eagle Ford now totals more than 81,000 net acres. Its drilling inventory increases 93 net wells to more than 915 net locations.
Carrizo paid $93 million to EFM at closing. The remaining $150 million will be paid by February 2015.
