By OGJ editors
HOUSTON, Dec. 15 – Carrizo Oil & Gas Inc., Houston, sold interests in several North Texas Barnett shale drilling units and completed wells for $15.7 million to Sumitomo Corp., which will participate in further drilling and completions in the play.
Sumitomo has purchased on a promoted basis a 12.5% interest in 16 Carrizo Barnett drilling units, including six recently completed wells with a current production rate net to Sumitomo of 1.25 MMcfd of gas.
Sumitomo will participate on a promoted basis in the completion of 18 drilled wells and the drilling and completion of 12 more wells under similar terms. Sumitomo has the right to participate, on a promoted basis and at the same working interest, in up to 56 future wells in the units, Carrizo said.
Carrizo said the agreement will permit it to opportunistically accelerate drilling in its core Barnett shale development area. It said the joint venture with Sumitomo reduces its balance under a credit facility and has the potential to expand into other resource plays.