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Carrizo Exits DJ Basin; Sells Off Assets for $140MM

Announced Date
November 27,2017
Deal Value  $mm
140
Net Acres
30,600
Transaction Type
Property
Buyer
Not Disclosed
Seller
Carrizo Oil & Gas Inc.
Price Per BOE $
40,000
Source Documents:
   Source Link
Location
Region
DJ Basin

Country
United States

State
Colorado

County
Weld

Play
DJ Basin


Production & Reserves
Production
2,427 Boe/d


Deal Metrics
$/Daily BOE
57,684.38

$/Acre
1,402.61

Transaction Details: 

[Summary: Carrizo has agreed to sell its entire non-p DJ Basin property $140 million in cash to an undisclosed buyer

Property Highlights:

  • Production                : 2,427 BOEPD (69% oil)
  • Land & Leasehold      : 30,600 net acres
  • Resource Potential      : 125 MMboe
  • Locations                  : 640 Well Locations

The transaction is currently expected to close in January 2018.

This sales marks the end of the transformation for the company that saw it selling off the Marcellus, and Utica properties. ]

 

Original Release:

On November 20, 2017, Carrizo entered into an agreement to sell substantially all of its assets in the DJ Basin for $140 million in cash, subject to customary closing terms and conditions. Additionally, Carrizo could receive contingent payments of up to $15 million in the aggregate based on crude oil prices exceeding certain thresholds over the next three years. Net production from these assets was 2,427 Boe/d (69% oil, 84% liquids) during the third quarter of 2017. The effective date of the transaction is September 1, 2017, and the transaction is currently expected to close in January, 2018.

S.P. "Chip" Johnson, IV, Carrizo's President and CEO, commented, "With the announced sale of our DJ Basin assets, we have now executed on the non-core divestiture program that we announced to the market earlier this year. The sale of the DJ Basin assets is another step towards achieving our leverage reduction goals and positioning Carrizo to be able to deliver strong, high-return production growth within cash flow."

DJ Basin Deal Activity In Last 12 Months



Related DJ Basin Region's Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategoryDetails
Dec-05-2017 Bill Barrett Corp.  Fifth Creek Energy 649 Colorado  E&P Details
Nov-15-2017 Sandridge Energy, Inc.  Bonanza Creek Energy, Inc. 746 Arkansas  E&P Details
Nov-08-2017 SRC Energy Inc  Noble Energy, Inc. 568 Colorado  E&P Details
Sep-25-2017 PDC Energy, Inc.  Bayswater Exploration and Production 210 Colorado  E&P Details
Apr-03-2017 Not Disclosed  Lilis Energy Inc. 2 Colorado  E&P Details

Price History



Date Deal Headline Price$/acre
Mar-02-2017 Bill Barrett Acquires DJ Basin Property for $11 Million $11.80  Million $908
Jan-12-2017 Synergy Unloads Non-Core DJ Basin Acreage; $71MM $71.00  Million $7,100
Sep-15-2015 Synergy Resources to Buy Wattenberg Property $78.00  Million $18,140

Related Carrizo Oil & Gas Inc. Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategoryDetails
Dec-12-2017 EP Energy Corp  Carrizo Oil & Gas Inc. 245 Texas  E&P Details
Oct-06-2017 Kalnin Ventures  Carrizo Oil & Gas Inc. 84 Pennsylvania  E&P Details
Sep-05-2017 Not Disclosed  Carrizo Oil & Gas Inc. 62 Ohio  E&P Details
Jun-28-2017 Carrizo Oil & Gas Inc.  EXL Petroleum LP 748 Texas  E&P Details
Oct-24-2016 Carrizo Oil & Gas Inc.  Sanchez Energy Corp 181 Texas  E&P Details