Carrizo Oil & Gas Inc (NASDAQ:CRZO) Reports The Divestiture of A Part Of Its Eagle Ford Acreage

668

Carrizo Oil & Gas Inc (NASDAQ:CRZO) has entered into a deal to divest a part of its assets in the Eagle Ford Shale in a deal valued at $245 million, subject to customary closing conditions and adjustments. The divested assets comprise around 24,500 net acres, based mainly in the downdip region of the volatile oil window. It had related net production during Q3 2017 of around 3,400 Boe/d.

The details

The effective transaction date is October 1, 2017, and the deal is currently anticipated to close by the close of January, 2018. Carrizo reported that the production related with the divestiture accounts for not more than 10% of the firm’s total part in the Eagle Ford Shale. After the close of the deal, the company will hold around 78,500 net acres in the same region, exclusively based within the major volatile oil fairway.

Mr. S.P. “Chip” Johnson, IV, the CEO and President of Carrizo, commented that their activity in the Eagle Ford is projected be focused on the up dip volatile oil window of the respective play. Provided this, they consider it made sense to get these assets’ value forward and utilize the proceeds to further robust their balance sheet by closing additional debt. Combined with their previously-reported, non-core divestitures, this deal brings the total reported proceeds from their divestiture program to around $530 million.”

Carrizo Oil is a Houston-based energy firm actively involved in the development, production and exploration of gas and oil from resource plays based in the U.S. Their existing operations are mainly focused on proven, producing gas and oil plays in the Permian Basin and the Eagle Ford Shale in West Texas and South Texas, respectively.

In the last trading session, the stock price of Carrizo declined 5% to close the day at $19.55. The decline came at a share volume of 3.63 million compared to average share volume of 3.36 million.

Subscribe to get your free report!

* indicates required
*Past performance is not a predictor of future results. All investing involves risk of loss and individual investments may vary. The examples provided may not be representative of typical results. Your capital is at risk when you invest – you can lose some or all of your money. Never risk more than you can afford to lose.By submitting your information you agree to the terms of our Privacy Policy • Cancel Newsletter Any Time.This is a FREE service from Finacials Trend. Signing up for our FREE daily e-letter also entitles you to receive this report. We will NOT share your email address with anyone.