HOUSTON,
TX — (Marketwire) — 10/04/12 — Carrizo Oil & Gas, Inc. (NASDAQ:
CRZO) announced today that it has entered into a joint venture agreement
with subsidiaries of OIL India Ltd. and Indian Oil Corporation Ltd.,
both international energy companies based in Delhi, India. Pursuant to
the agreement, OIL and Indian Oil Corp. have together acquired an
undivided 30% non-operated interest in substantially all of Carrizo’s
assets and operations prospective for Niobrara Formation oil development
located primarily in Weld and Adams Counties, Colorado for
approximately $82.5 million. Included in the transaction is the sale of
approximately 18,100 net mineral acres and approximately 555 Boe/day
(75% oil) of production from 24 gross currently producing Carrizo
operated wells.
Under the terms of the joint venture, Carrizo is receiving $41.25
million in cash and an additional $41.25 million in the form of a
drilling carry that will be applied to fund a portion of Carrizo’s share
of future Niobrara development costs. The carry is anticipated to be
fully utilized by early 2014. The transaction has an effective date of
October 1, 2012 and is subject to customary post-closing adjustments,
consents and indemnities.
Carrizo’s President and CEO, S.P. “Chip” Johnson, IV, commented, “We
are pleased to announce this joint venture and relationship with Oil
India Ltd. and Indian Oil Corporation. We plan to apply the cash portion
of the transaction to help fund our remaining 2012 capital expenditures
and the drilling carry will allow the addition of a second drilling rig
in the Niobrara in early 2013. We estimate that the acceleration in
development activity net to Carrizo from the additional rig will offset
our future lower working interest and will result in an increase in
Niobrara oil production net to our shareholder’s interests over the
course of 2013 compared to our pre-JV internal estimates.”
Gulf Coast Sale
Carrizo announced today that it has completed the divestiture of substantially all of its legacy producing properties along the onshore Gulf of Mexico located primarily in Texas and Louisiana for approximately $19.5 million cash consideration, subject to customary post-closing adjustments, consents and indemnities. Effective date for the transaction was July 1, 2012. Net production from the sold properties is approximately 120 bbls/day of oil/condensate and 5,000 mcf/day of high BTU gas.
Carrizo announced today that it has completed the divestiture of substantially all of its legacy producing properties along the onshore Gulf of Mexico located primarily in Texas and Louisiana for approximately $19.5 million cash consideration, subject to customary post-closing adjustments, consents and indemnities. Effective date for the transaction was July 1, 2012. Net production from the sold properties is approximately 120 bbls/day of oil/condensate and 5,000 mcf/day of high BTU gas.
Carrizo Oil & Gas, Inc. is a Houston-based energy company
actively engaged in the exploration, development, exploitation, and
production of oil and natural gas primarily in the Eagle Ford Shale in
South Texas, the Barnett Shale in North Texas, the Marcellus Shale in
Appalachia, and the Niobrara Formation in Colorado. Carrizo is also
actively developing its oil discovery known as the Huntington Field in
the UK North Sea. Carrizo controls significant prospective acreage
blocks and utilizes advanced drilling and completion technology along
with sophisticated 3-D seismic techniques to identify potential oil and
gas drilling opportunities and to optimize reserve recovery.
Statements in this news release that are not historical facts,
including but not limited to those related to timing of closing,
benefits of any of the transactions described, purchase price, capital
expenditures, use of proceeds, use of carry, timing and levels of
production, production mix, development plans, use of proceeds, oil and
gas sales, 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, timing of completion and drilling of wells, and other
statements that are not historical facts are forward-looking statements
that are based on current expectations. Although Carrizo 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 failure of closing conditions to be
satisfied, the risk of the drilling carry not being utilized, completion
of possible acreage acquisitions, title defects and other purchase
price adjustments and indemnities, results of wells, performance of rig
operators and gathering systems, actions by governmental authorities,
joint venture partners, purchasers, industry partners, lenders and other
third parties, market and other conditions, availability of well
connects, capital needs and uses, commodity price changes, 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 Carrizo’s Form 10-K for
the year ended December 31, 2011 and its other filings with the
Securities and Exchange Commission.
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