Carrizo Oil & Gas Inc. (Nasdaq:CRZO) has agreed to sell its assets in the Utica Shale to an undisclosed buyer. On August 31, 2017, Carrizo entered into an agreement to sell substantially all of its assets in the Utica Shale, located primarily in Guernsey County, OH, for $62 million in cash, subject to customary closing conditions. Additionally, Carrizo could receive contingent payments of up to $15 million in aggregate based on average annual WTI prices exceeding certain thresholds over the next three years.
According to its website, Carrizo’s nearly 26,000 net Utica acres hold over 130 net undrilled locations.
The Houston-based energy company's current operations are principally focused in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the DJ Basin in Colorado, and the Marcellus Shale in Pennsylvania. The company agreed to pay $648 million for Delaware Basin properties from ExL Petroleum Management LLC in June.
The effective date of the transaction is April 1, 2017, and the transaction is currently expected to close by October 31, 2017.