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Carrizo Oil & Gas Provides Update on Divestiture Program

Source: www.gulfoilandgas.com 11/27/2017, Location: North America

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Carrizo Oil & Gas, Inc. (Nasdaq:CRZO) today announced that it has closed on both of its previously-announced Appalachia divestitures and has entered into an agreement to sell substantially all of its assets in the DJ Basin.

Carrizo previously announced that it had entered into agreements to sell substantially all of its assets in the Utica Shale and Marcellus Shale for cash proceeds of $62 million and $84 million, respectively, subject to customary closing terms and conditions, plus contingent payments based on the level of commodity prices over the next three years. Net production from these assets was 661 Boe/d (28% oil, 50% liquids) and 36,722 Mcf/d, respectively, during the third quarter of 2017.

The sale of the Company's Utica Shale assets closed on November 15, 2017, while the sale of the Company’s Marcellus Shale assets closed on November 21, 2017. The Company received a combined total of approximately $128 million at the closings of the two dispositions, which excludes the previously-received deposit.

On November 20, 2017, Carrizo entered into an agreement to sell substantially all of its assets in the DJ Basin for $140 million in cash, subject to customary closing terms and conditions. Additionally, Carrizo could receive contingent payments of up to $15 million in the aggregate based on crude oil prices exceeding certain thresholds over the next three years. Net production from these assets was 2,427 Boe/d (69% oil, 84% liquids) during the third quarter of 2017. The effective date of the transaction is September 1, 2017, and the transaction is currently expected to close in January, 2018.

S.P. “Chip” Johnson, IV, Carrizo’s President and CEO, commented, “With the announced sale of our DJ Basin assets, we have now executed on the non-core divestiture program that we announced to the market earlier this year. The sale of the DJ Basin assets is another step towards achieving our leverage reduction goals and positioning Carrizo to be able to deliver strong, high-return production growth within cash flow.”

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.

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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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