Houston-based energy company Carrizo Oil & Gas Inc has agreed to sell its assets in the Marcellus Shale to Kalnin Ventures for $84 million in cash. The deal is expected to close by the end of November 2017. Willkie Farr & Gallagher LLP represented Kalnin on the transaction.
HOUSTON–(BUSINESS WIRE)–Carrizo Oil & Gas, Inc. (Nasdaq: CRZO) today announced that on October 5, 2017, the Company entered into an agreement to sell its assets in the Marcellus Shale to a subsidiary of Kalnin Ventures LLC for $84 million in cash, subject to customary closing terms and conditions. Additionally, Carrizo could receive contingent payments of up to $7.5 million in aggregate based on natural gas prices exceeding certain thresholds over the next three years. Net production from the assets averaged more than 40 MMcf/d of natural gas over the first nine months of 2017. The effective date of the transaction is April 1, 2017, and the transaction is currently expected to close by the end of November, 2017.
S.P. “Chip” Johnson, IV, Carrizo’s President and CEO, commented, “With the announced sale of our Marcellus package, we have continued to execute on the divestiture program we outlined earlier this year. We expect to close the sale of both of our Appalachian packages during the fourth quarter and remain on track to reach our divestiture program goals. 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.”
Carrizo Oil & Gas, Inc. is a Houston-based energy company actively engaged in the exploration, development, and production of oil and gas from resource plays located in the United States. Our current operations are principally focused on proven, producing oil and gas plays in the Eagle Ford Shale in South Texas and the Permian Basin in West Texas.