Carrizo Oil & Gas Inc. agreed to sell its Marcellus Shale assets to a subsidiary of Kalnin Ventures LLC for $84 million.
Under the deal, Carrizo could also earn up to $7.5 million in contingent payments depending on natural gas prices exceeding certain thresholds over three years, according to an Oct. 6 news release. The assets had an average net production of over 40 MMcf/d of natural gas in the first nine months of 2017.
The deal is scheduled to close by the end of November, with an effective date of April 1. Carrizo previously agreed to divest all of its assets in the Utica Shale for $62 million while growing its Delaware Basin position through a $648 million asset acquisition.
"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," said Carrizo President and CEO S.P. Johnson IV, whose operations are focused in the Eagle Ford Shale and the Permian Basin.
Kalnin Ventures is backed by Thailand coal and power company Banpu PCL and has made a series of Marcellus investments in the past several years.