Carrizo Oil & Gas closes sale of certain Eagle Ford assets

Carrizo Oil & Gas Inc., Houston, received $212 million Jan. 31 after closing on the sale of certain Eagle Ford assets to an undisclosed buyer. A deposit of $24.5 million was paid after the deal to sell the 24,500 net acres was announced in December 2017.

Carrizo Oil & Gas Inc., Houston, received $212 million Jan. 31 after closing on the sale of certain Eagle Ford assets to an undisclosed buyer. A deposit of $24.5 million was paid after the deal to sell the 24,500 net acres was announced in December 2017.

The divested assets, mostly in the downdip area of the volatile oil window in La Salle county, had associated net production during third-quarter 2017 of 3,400 boe/d (63% oil, 19% gas, 18% NGLs). Associated production for the assets accounts for less than 10% of the company’s total in the Eagle Ford, the company said.

Carrizo Pres. and Chief Executive Officer S.P. Johnson IV said that company activity in the Eagle Ford “is expected to be focused on the updip volatile oil window of the play,” and that it made sense to “bring the value of these assets forward” and use proceeds to retire debt.

Carrizo now holds 78,500 net acres in the Eagle Ford shale with 950 net undrilled locations, exclusively located within the core volatile oil fairway, where, as part of its 2017 development program detailed in a presentation for a January energy conference, the company is running 2-3 rigs. Multiple inventory expansion and completion optimization initiatives are under way, the company said.

The transaction brings total announced proceeds from the company’s divestiture program to $530 million, Johnson said.

Contact Mikaila Adams at mikaila@pennwell.com.

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