Carrizo Oil & Gas Announces the Divestiture of a Portion of Its Eagle Ford Acreage
December 12 2017 - 6:30AM
Business Wire
Carrizo Oil & Gas, Inc. (Nasdaq: CRZO) today
announced that it entered into an agreement to divest a portion of
its assets in the Eagle Ford Shale for $245 million in cash,
subject to adjustment and customary closing terms and conditions.
The divested assets include approximately 24,500 net acres, located
primarily in the downdip area of the volatile oil window, and had
associated net production during the third quarter of 2017 of
approximately 3,400 Boe/d (63% oil, 19% gas, 18% NGLs). The
effective date of the transaction is October 1, 2017, and the
transaction is currently expected to close by the end of January,
2018. The production associated with the divestiture accounts for
less than 10% of the Company’s total in the Eagle Ford Shale.
Following the close of the transaction, Carrizo will hold
approximately 78,500 net acres in the Eagle Ford Shale, exclusively
located within the core volatile oil fairway.
S.P. “Chip” Johnson, IV, Carrizo’s President and CEO, commented,
“Our activity in the Eagle Ford Shale is expected to be focused on
the updip volatile oil window of the play. Given this, we believe
it made sense to bring the value of these assets forward and use
the proceeds to further strengthen our balance sheet by retiring
additional debt. Combined with our previously-announced, non-core
divestitures, this transaction brings the total announced proceeds
from our divestiture program to approximately $530 million.”
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 on proven, producing oil
and gas plays in the Eagle Ford Shale in South Texas and the
Permian Basin in West Texas.
Statements in this release that are not historical facts,
including but not limited to those related to updates, closing date
and sale announcement timing, guidance, proceeds of divestiture
program, production, the estimated production results and financial
performance, effects of transactions, timing, levels of and
potential production, oil and gas prices, drilling and completion
activities, drilling inventory, including timing thereof,
development plans, growth, hedging activity, 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 well costs, estimated recoveries, results of
wells and testing, failure of actual production to meet
expectations, performance of rig operators, 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, actions by
purchasers or sellers of properties, satisfaction of closing
conditions and failure of disposition to close, purchase price
adjustments, integration, commodity price levels, and other risks
and effects of acquisitions and dispositions, market and other
conditions, risks regarding financing, 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. There can be no
assurance any transaction described in this press release will
occur on the terms or timing described, or at all.
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version on businesswire.com: http://www.businesswire.com/news/home/20171212005263/en/
Carrizo Oil & Gas, Inc.Jeffrey P. Hayden,
CFAVP - Investor Relations(713)
328-1044orKim PinyopusarerkManager - Investor
Relations(713) 358-6430
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