Carrizo Oil & Gas Announces Closing of Delaware Basin Acquisition
August 11 2017 - 6:30AM
Carrizo Oil & Gas, Inc. (Nasdaq:CRZO) today
announced that it has completed the closing of the transactions
contemplated by the purchase and sale agreement with ExL Petroleum
Management, LLC and ExL Petroleum Operating Inc. (together, “ExL”).
At closing, Carrizo purchased approximately 16,508 net acres
located in the Delaware Basin in Reeves and Ward Counties, Texas.
The previously-announced aggregate consideration for the
transaction is approximately $648 million in cash, which includes
the $75.0 million performance deposit previously paid by the
Company, subject to customary purchase price adjustments. As
previously disclosed, the Company has also agreed to pay an
additional $50.0 million per year if the average daily closing spot
West Texas Intermediate crude oil price as measured by the U.S.
Energy Information Administration (the “EIA WTI average price”) is
above $50/Bbl for any of the calendar years of 2018, 2019, 2020,
and 2021, with such payments due on January 29, 2019, January 28,
2020, January 28, 2021, and January 28, 2022, respectively. This
payment will be zero for the respective year if the EIA WTI average
price is $50/Bbl or below for any of such years, and is capped at
and will not exceed $125.0 million.
The assets are currently producing approximately
9,500 Boe/d (48% oil, 67% liquids) from 14 gross wells, including
two that are still cleaning up. The frac crew returned to the
assets this week and has begun completing the Christian 2 1H well.
Of the five rigs currently operating on the ExL assets, four are
expected to be released after their current well. Carrizo has
contracted for two newer-vintage rigs to arrive at the acreage,
with the first scheduled for later this month.
Carrizo Oil & Gas, Inc. is a Houston-based
energy company actively engaged in the exploration, development,
and production of oil and gas from resource plays located in the
United States. Our current operations are principally focused in
proven, producing oil and gas plays primarily in the Eagle Ford
Shale in South Texas, the Delaware Basin in West Texas, the
Niobrara Formation in Colorado, the Utica Shale in Ohio, and the
Marcellus Shale in Pennsylvania.
Statements in this release that are not
historical facts, including but not limited to those related to the
ExL acquisition (including purchase price, benefits and effects
thereof), the estimated production results of the ExL properties,
and the results, benefits and timing thereof, rigs on acquired
properties, capital requirements, capital expenditure and other
spending plans, guidance, effects of transactions, the timing,
levels of and potential production, oil and gas prices, drilling
and completion activities, drilling inventory, including timing
thereof, development plans, growth, use of proceeds, the company’s
or management’s intentions, beliefs, expectations, hopes,
projections, assessment of risks, estimations, plans or predictions
for the future, results of the company’s strategies and other
statements that are not historical facts are forward-looking
statements that are based on current expectations. Although the
company believes that its expectations are based on reasonable
assumptions, it can give no assurance that these expectations will
prove correct. Important factors that could cause actual results to
differ materially from those in the forward-looking statements
include assumptions regarding purchase price and other adjustments,
integration and other risks of acquisitions, actions by ExL in the
ExL acquisition, actions by sellers and buyers, expectations of
buyers of assets, failure to enter into any agreements for asset
sales or to consummate such transactions, market conditions, risks
regarding financing, capital needs, evaluations by lenders under
our revolving credit facility, other actions by lenders, title
issues, well costs, estimated recoveries, pricing and other factors
affecting average well returns, results of wells and production
testing, failure of actual production to meet expectations, the
uncertainty of reserve information and future net revenue
estimates, performance of rig operators and uses, changes in
commodity prices, spacing test results, availability of gathering
systems, costs of oilfield services, actions by governmental
authorities, joint venture partners, industry partners, lenders and
other third parties, availability of well connects, capital needs
and uses, commodity price changes, effects of the global economy on
exploration activity, results of and dependence on exploratory
drilling activities, operating risks, right-of-way and other land
issues, availability of capital and equipment, weather, and other
risks described in the company’s Form 10-K for the year ended
December 31, 2016 and its other filings with the U.S. Securities
and Exchange Commission.
Source: Carrizo Oil & Gas, Inc
Contact:
Jeffrey P. Hayden, CFA, VP - Investor Relations
(713) 328-1044
Kim Pinyopusarerk, Manager - Investor Relations
(713) 358-6430
Carrizo Oil and Gas (NASDAQ:CRZO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Carrizo Oil and Gas (NASDAQ:CRZO)
Historical Stock Chart
From Apr 2023 to Apr 2024