Carrizo Oil & Gas Announces the Sale of Its Marcellus Shale Assets
October 06 2017 - 6:30AM
Business Wire
Carrizo Oil & Gas, Inc. (Nasdaq: CRZO) today
announced that on October 5, 2017, the Company entered into an
agreement to sell its assets in the Marcellus Shale to a subsidiary
of Kalnin Ventures LLC for $84 million in cash, subject to
customary closing terms and conditions. Additionally, Carrizo could
receive contingent payments of up to $7.5 million in aggregate
based on natural gas prices exceeding certain thresholds over the
next three years. Net production from the assets averaged more than
40 MMcf/d of natural gas over the first nine months of 2017. The
effective date of the transaction is April 1, 2017, and the
transaction is currently expected to close by the end of November,
2017.
S.P. “Chip” Johnson, IV, Carrizo’s President and CEO, commented,
“With the announced sale of our Marcellus package, we have
continued to execute on the divestiture program we outlined earlier
this year. We expect to close the sale of both of our Appalachian
packages during the fourth quarter and remain on track to reach our
divestiture program goals. Our DJ Basin package is currently being
marketed, and interest has been strong. We hope to be able to
announce a sale of this asset later this quarter.”
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, contingent payments, 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/20171006005210/en/
Carrizo Oil & Gas, Inc.Jeffrey P. HaydenCFA, VP -
Investor Relations713-328-1044orKim PinyopusarerkManager - Investor
Relations713-358-6430
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