December 14, 2017 - 7:30 AM EST
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Wired News – Carrizo Oil & Gas Sell Off Portion of Eagle Ford Acreage

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LONDON, UK / ACCESSWIRE / December 14, 2017 / Active-Investors issued a free report on Carrizo Oil & Gas, Inc. (NASDAQ: CRZO), which is readily accessible upon registration at www.active-investors.com/registration-sg/?symbol=CRZO as the Company's latest news hit the wire. On December 12, 2017, the Company announced that it has signed an agreement to sell off a portion of its assets in the Eagle Ford Shale in an all-cash deal. The asset sale is valued approximately $245 million and is subject to adjustments at the time of closing. The name of the buyer has not been disclosed by the Company. Sign up now for our free research reports at:

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Active-Investors.com is currently working on the research report for PrimeEnergy Corporation (NASDAQ: PNRG), which also belongs to the Basic Materials sector as the Company Carrizo Oil & Gas. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Carrizo Oil & Gas most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:

www.active-investors.com/registration-sg/?symbol=CRZO

Commenting on the assets sale, S.P. "Chip" Johnson, IV, Carrizo's President and CEO, said:

"Our activity in the Eagle Ford Shale is expected to be focused on the updip volatile oil window of the play. Given this, we believe it made sense to bring the value of these assets forward and use the proceeds to further strengthen our balance sheet by retiring additional debt. Combined with our previously-announced, non-core divestitures, this transaction brings the total announced proceeds from our divestiture program to approximately $530 million."

Details of the divested assets in Eagle Ford Shale

The portion of being sold off includes approximately 24,500 net acres. This area is in the downdip area of the volatile oil window. The Q3 2017 production from this acreage was approximately 3,400 Boe/d (barrel of oil equivalent per day) of which 63% was oil, 19% was gas and remaining 18% was NGLs (Natural gas liquids). This production is less than 10% of the Company's overall production from Eagle Ford Shale acreage. The transaction is expected to close by end of January 2018 and the effective date of the sale is October 01, 2017.

Once the transaction is completed, the Company's holding in the Eagle Ford Shale area would be approximately 78,500 net acres, which is located within the core volatile oil fairway.

Divestitures and the Company's Rationale

In June 2017, the Company had announced the acquisition of assets in the Delaware Basin from ExL Petroleum Management, LLC (ExL), a portfolio Company of Quantum Energy Partners, for $648 million in cash. The Company completed the transaction in August 2017. At the same time, the Company also announced that it would be divesting its non-core assets and use the funds from the assets sale to reduce its debt.

Some of the assets sold by the Company include the following:

  • In September 2017, the Company sold off its assets in the Utica Shale for $62 million in cash plus contingent payments of up to $15 million payable over the next three years.
  • In October 2017, the Company sold off assets in the Marcellus Shale for $84 million in cash plus contingent payments of up to $7.5 million payable over the next three years.
  • In November 2017, the Company sold off all its assets in the DJ Basin for $140 million in cash plus contingent payments of up to $15 million payable over the next three years.

The total funds raised from all assets sale, including current sale and excluding contingent payments, is approximately $530 million.

About Carrizo Oil & Gas, Inc.

Houston, Texas-based Carrizo is an independent energy Company, engaged in the exploration, development, and production of oil and gas primarily in theUS. The Company holds interest in crude oil and liquids plays comprising of assets in Eagle Ford Shale in south Texas and the Permian Basin in West Texas.

Stock Performance Snapshot

December 13, 2017 - At Wednesday's closing bell, Carrizo Oil & Gas' stock dropped 5.00%, ending the trading session at $19.55.

Volume traded for the day: 3.64 million shares, which was above the 3-month average volume of 3.63 million shares.

Stock performance in the last month – up 0.26%; previous three-month period – up 38.65%; and past six-month period – up 5.33%

After yesterday's close, Carrizo Oil & Gas' market cap was at $1.56 billion.

Price to Earnings (P/E) ratio was at 12.64.

The stock is part of the Basic Materials sector, categorized under the Independent Oil & Gas industry. This sector was up 0.3% at the end of the session.

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Source: ACCESSWIRE Investor Awareness (December 14, 2017 - 7:30 AM EST)

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