The Houston-based producer Carrizo Oil & Gas Inc. agreed to sell about 24,500 net acres of its Eagle Ford Shale assets for $245 million in cash, bringing total proceeds from divestitures to about $530 million.
The assets yielded about 3,400 barrels of oil equivalent per day of associated net production in the third quarter of 2017, composed of 63% oil, 19% gas and 18% NGLs. Production associated with the assets account for less than 10% of Carrizo's total in the Eagle Ford, according to a Dec. 12 news release.
"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," said S.P. Johnson IV, president and CEO of Carrizo.
Upon deal closing, Carrizo would have about 78,500 net acres left in the Eagle Ford's core volatile oil fairway. The divestiture is scheduled to close by the end of January 2018, with an effective date of Oct. 1.
