Carrizo Oil and Gas announced last week they will sell a portion of its Eagle Ford assets for $245 million to EP Energy Corp.
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The sale includes approximately 24,500 net acres and represents almost a quarter of the company's Eagle Ford holdings. Production for the assets in the 3rd quarter was 3,400 Boe/d, less than 10% of the Company’s total in the Eagle Ford Shale.
“Our activity in the Eagle Ford Shale is expected to be focused on the updip volatile oil window of the play. Given this, we believe it made sense to bring the value of these assets forward and use the proceeds to further strengthen our balance sheet by retiring additional debt. Combined with our previously-announced, non-core divestitures, this transaction brings the total announced proceeds from our divestiture program to approximately $530 million.”
Houston-based, EP Energy purchased the assets, adding to its other Eagle Ford holdings of 91,675 acres
After the sale closes in January 2018, Carrizo will maintain 78,500 net acres in the Eagle Ford Shale.
Over the last year, the company closed sales of assets in the Utica and Marcellus shale fields and announced the sale of its Denver-Julesburg Basin assets, all to pay off debt.
Carrizo executives announced in the first quarter that it planned to invest heavily in the Eagle Ford with 85% of the company's drilling and completion capital expenditures allocated to Play.