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Carrizo closes Appalachian exit, agrees to sell all DJ Basin assets for $140M

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Carrizo closes Appalachian exit, agrees to sell all DJ Basin assets for $140M

After closing on its $128 million asset sales to exit from Appalachia, Carrizo Oil & Gas Inc. is moving on to sell all of its assets in the DJ Basin for $140 million as part of its ongoing noncore divestiture program.

Carrizo's sale of the Utica Shale assets for $62 million closed on Nov. 15, while the Marcellus Shale asset divestiture closed on Nov. 21, according to a Nov. 27 news release. The company is set to receive contingent payments on the assets depending on commodity prices over the next three years. During the third quarter, the Utica assets had net production of 661 barrels of oil equivalent per day, composed of 28% oil and 50% liquids, while the Marcellus Shale assets had 36,722 Mcf/d of net production.

Carrizo on Nov. 20 agreed to divest substantially all of its DJ Basin assets, with the agreement including up to $15 million in contingent payments based on commodity prices going over certain thresholds in the next three years. The assets yielded net production of 2,427 boe/d, with 69% oil and 84% liquids, in the third quarter.

The deal is scheduled to close in January 2018, with an effective date of Sept. 1.

Carrizo's exploration and production operations are focused in the Eagle Ford Shale and the Permian Basin.