Carrizo Acquires Eagle Ford Working Interest – $250-Million

Deal Includes 6,820 Net Acres in LaSalle, Atascosa, and McMullen Counties
Carrizo Eagle Ford Acreage Map

Carrizo Eagle Ford Acreage Map|Click to Enlarge

Houston-based Carrizo Oil & Gas, Inc., has closed its $250-million Eagle Ford acquisition of 6,820 net Eagle Ford acres from Eagle Ford Minerals, LLC, for $250-million. The deal represents a ~25% working interest* in the acquired properties, where Carrizo was already the operator. At closing, Carrizo assumed 100% of the working interest in the assets.

The acreage includes leaseholds and producing interests, and is located primarily in the oil window of the play, in LaSalle, Atascosa, and McMullen Counties. Net production from the acquired assets in the third-quarter was approximately 2,670 boe/d, with an 85% oil cut.

S.P. “Chip” Johnson, IV, Carrizo’s President and CEO, said, “while Carrizo has not historically been active in the acquisition of producing properties, we felt this was a perfect deal for the company. The acquisition adds an incremental 25% working interest in three of our four highest-return areas within the Eagle Ford Shale, and adds a significant amount of undrilled potential in addition to the existing production.”

The acquisition increases Carrizo’s Eagle Ford position to more than 81,000 net acres, and its drilling inventory in the play by 93 net wells to more than 915 net locations. At the end of September, Carrizo estimated net proved reserves associated with the acquisition to be 16.7 MMBoe (82% oil).

The transaction was completed on October 24, 2014, with an effective date of October 1, 2014. At closing, Carrizo paid approximately $93 million, with the remaining $150 million to be paid by February 2015.

Working Interest* – whosoever owns the working interest is liable for a portion of the ongoing costs associated with exploration, drilling and production. Working interest owner(s) also fully participate in the profits of any successful wells.


Aurora Spuds Its First Operated Eagle Ford Well

Developing The Eagle Ford At 40-Acre Spacing
Aurora Oil and Gas Operated Eagle Ford Acreage

Aurora Oil & Gas Operated Eagle Ford Acreage | Click to Enlarge

In March of 2013, Aurora acquired operated acreage in the Eagle Ford and on May 31st the company spud its first operated well in the play.

A Nabors rig is being used on the company’s Heard Ranch to drill the JP Heard Bower #19H. A total of three wells will be drilled from the surface pad. [Read more…]