Carrizo Oil & Gas announces closing of Delaware basin acquisition

8/11/2017

HOUSTON -- Carrizo Oil & Gas, Inc., has announced that it completed the closing of the transactions contemplated by the purchase and sale agreement with ExL Petroleum Management, LLC, and ExL Petroleum Operating Inc. (together, "ExL").

At closing, Carrizo purchased approximately 16,508 net acres located in the Delaware basin in Reeves and Ward Counties, Texas. The previously-announced aggregate consideration for the transaction is approximately $648 million in cash, which includes the $75-million performance deposit previously paid by the Company, subject to customary purchase price adjustments. As previously disclosed, the Company has also agreed to pay an additional $50 million per year if the average daily closing spot West Texas Intermediate crude oil price as measured by the U.S. Energy Information Administration is above $50/bbl for any of the calendar years of 2018, 2019, 2020, and 2021, with such payments due on Jan. 29, 2019, Jan. 28, 2020, Jan. 28, 2021, and Jan. 28, 2022, respectively. This payment will be zero for the respective year if the EIA WTI average price is $50/bbl or below for any of such years, and is capped at and will not exceed $125 million.

The assets are currently producing approximately 9,500 boed (48% oil, 67% liquids) from 14 gross wells, including two that are still cleaning up. The frac crew returned to the assets this week and has begun completing the Christian 2 1H well. Of the five rigs currently operating on the ExL assets, four are expected to be released after their current well. Carrizo has contracted for two newer-vintage rigs to arrive at the acreage, with the first scheduled for later this month.

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 in proven, producing oil and gas plays primarily in the Eagle Ford shale in South Texas, the Delaware basin in West Texas, the Niobrara formation in Colorado, the Utica shale in Ohio, and the Marcellus shale in Pennsylvania.

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