Carrizo Oil & Gas, Inc. (Nasdaq: CRZO) today announced that
on October 5, 2017, the Company entered into an agreement to sell its
assets in the Marcellus Shale to a subsidiary of Kalnin Ventures LLC for
$84 million in cash, subject to customary closing terms and conditions.
Additionally, Carrizo could receive contingent payments of up to $7.5
million in aggregate based on natural gas prices exceeding certain
thresholds over the next three years. Net production from the assets
averaged more than 40 MMcf/d of natural gas over the first nine months
of 2017. The effective date of the transaction is April 1, 2017, and the
transaction is currently expected to close by the end of November, 2017.
S.P. “Chip” Johnson, IV, Carrizo’s President and CEO, commented, “With
the announced sale of our Marcellus package, we have continued to
execute on the divestiture program we outlined earlier this year. We
expect to close the sale of both of our Appalachian packages during the
fourth quarter and remain on track to reach our divestiture program
goals. Our DJ Basin package is currently being marketed, and interest
has been strong. We hope to be able to announce a sale of this asset
later this quarter.”
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.
Statements in this release that are not historical facts, including
but not limited to those related to updates, closing date and sale
announcement timing, contingent payments, guidance, proceeds of
divestiture program, production, the estimated production results and
financial performance, effects of transactions, timing, levels of and
potential production, oil and gas prices, drilling and completion
activities, drilling inventory, including timing thereof, development
plans, growth, hedging activity, the Company’s or management’s
intentions, beliefs, expectations, hopes, projections, assessment of
risks, estimations, plans or predictions for the future, results of the
Company’s strategies and other statements that are not historical facts
are forward-looking statements that are based on current expectations.
Although the Company believes that its expectations are based on
reasonable assumptions, it can give no assurance that these expectations
will prove correct. Important factors that could cause actual results to
differ materially from those in the forward-looking statements include
assumptions regarding well costs, estimated recoveries, results of wells
and testing, failure of actual production to meet expectations,
performance of rig operators, spacing test results, availability of
gathering systems, costs of oilfield services, actions by governmental
authorities, joint venture partners, industry partners, lenders and
other third parties, actions by purchasers or sellers of properties,
satisfaction of closing conditions and failure of disposition to close,
purchase price adjustments, integration, commodity price levels, and
other risks and effects of acquisitions and dispositions, market and
other conditions, risks regarding financing, availability of well
connects, capital needs and uses, commodity price changes, effects of
the global economy on exploration activity, results of and dependence on
exploratory drilling activities, operating risks, right-of-way and other
land issues, availability of capital and equipment, weather, and other
risks described in the Company’s Form 10-K for the year ended December
31, 2016 and its other filings with the U.S. Securities and Exchange
Commission. There can be no assurance any transaction described in this
press release will occur on the terms or timing described, or at all.
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