Carrizo Oil & Gas acquires Eagle Ford properties for $181 million

HOUSTON -- Carrizo Oil & Gas has agreed to acquire Eagle Ford shale properties from an affiliate of Sanchez Energy Corp. for $181 million in cash, subject to customary closing adjustments.

The acquisition includes approximately 15,000 net bolt-on acres, located primarily in the core volatile oil window of the Eagle Ford shale in LaSalle, Frio, and McMullen counties, Texas. Estimated net production during September was approximately 3,100 boed (61% oil) from 112 gross (93 net) wells, and net proved reserves, based on the company’s internal estimates, were 14.5 MMboe (71% oil, 56% developed).

The acreage is 100% operated with no additional drilling requirements.

Following the closing of the transaction, Carrizo will hold over 100,000 net acres in the Eagle Ford shale, concentrated in LaSalle, McMullen, and Atascosa counties. Based on the company’s current development spacing assumptions, which include only a single layer within the Lower Eagle Ford shale, the acquisition increases Carrizo’s drilling inventory in the play to approximately 1,100 net locations.

The transaction has an effective date of June 1, 2016, and is currently expected to close by mid-December.