Carrizo Oil & Gas to sell assets in Barnett, Marcellus shale
HOUSTON -- Carrizo Oil & Gas, Inc. has announced the sale of its remaining Barnett shale properties as well as other non-core assets in east Texas and the Marcellus shale.
Carrizo has agreed to sell certain non-core assets, including substantially all of its remaining Barnett shale assets, as well as all of its interest in the Camp Hill field in east Texas and certain undeveloped acreage in the Marcellus shale, for total consideration of approximately $268 million, including aggregate cash proceeds of approximately $250.4 million.
Carrizo intends to use the net proceeds from these sale transactions to repay borrowings under its revolving credit facility as well as to fund a portion of the remainder of its 2013 capital expenditures program, largely in the Eagle Ford shale.
The Barnett shale divestiture includes approximately 9,000 net acres, primarily in southeast Tarrant County, with year-end 2012 proved reserves of 303.5 Bcf. Current net production from the assets is approximately 44 MMcf/d. Closing of the transaction is expected by late October, with an effective date of July 1, 2013.
The Camp Hill divestiture includes year-end 2012 proved reserves of approximately 1.0 MMBbl and current net production of about 160 Bbl/d of oil. It also has an effective date of July 1, 2013 and is expected to close shortly.
The Marcellus Shale divestiture primarily includes 2,850 net undeveloped acres in non-core areas of the play and is expected to close in the fourth quarter.