Market Overview

Carrizo Oil & Gas Announces Delaware Basin Acquisition

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Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) today announced that
it has agreed to acquire Delaware Basin properties from Devon Energy
Corporation (Devon) for $215 million in cash, subject to customary
closing adjustments. Subject to market conditions, the Company plans to
fund the purchase price with net proceeds from an equity offering
announced concurrently with this release.

Acquisition Highlights

  • Approximately 10,600 gross (9,600 net) acres located in the Delaware
    Basin in Reeves and Ward counties, with the majority of the position
    adjacent to the Company's existing acreage
  • High degree of operational control with more than 90% of net acreage
    operated
  • Minimal near-term drilling obligations as 94% of the acreage is held
    by production
  • Low average royalty of approximately 20%
  • Net production of approximately 2,500 Boe/d (60% oil)
  • More than 100 net potential de-risked drilling locations identified
    across the Wolfcamp A and B based on 7,000-ft. laterals, with
    significant upside potential from additional zones, further
    delineation, and future downspacing
  • Includes salt-water disposal wells that can be integrated into the
    Company's system
  • Significant opportunities to generate efficiencies from increased
    scale, extension of lateral lengths, and integration of infrastructure

The acquisition is currently expected to close during the fourth quarter
of 2018 and increases the Company's acreage position in the Delaware
Basin to approximately 46,000 net acres on a pro forma basis.

S.P. "Chip" Johnson, IV, Carrizo's President and CEO, commented on the
acquisition, "This acquisition is an excellent fit with our existing
Phantom-area acreage and meaningfully increases our scale in the area.
Upon completion of the transaction, we will hold approximately 26,300
net acres in our Phantom area and 46,000 net acres in the Delaware
Basin. The acquisition materially increases our inventory of de-risked
drilling locations in the area as well as offers significant upside
potential from delineating the entire position and testing additional
zones. The acreage also has a high degree of operational control and
minimal near-term drilling obligations. As a result, we expect to
seamlessly integrate these assets into our existing development plan for
the area, which currently assumes a ramp-up in activity in the second
half of 2019 as Permian pipeline takeaway is forecast to increase. Over
time, we see the potential to achieve meaningful efficiencies through
optimizing future large-scale pad development, drilling longer-lateral
wells, and integrating the existing infrastructure within our system."

Carrizo has posted a presentation to its website at http://www.carrizo.com
that provides maps and additional details on the properties to be
acquired. The presentation can be found by clicking on "Investor
Relations" and then "Presentations."

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 in proven, producing oil and gas plays primarily
in the Eagle Ford Shale in South Texas and the Permian Basin in West
Texas.

Statements in this release that are not historical facts, including
but not limited to those related to our ability to realize integration
or any other expected benefits or effects of any acquisition, the
timing, final purchase price or consummation of the acquisition, capital
requirements, upside potential, future downspacing, integration, effect
on activity, opportunities for efficiencies, ability to market
production, capital expenditure, guidance, production, the estimated
production results and financial performance, effects of transactions,
targeted ratios and other metrics, timing, levels of and potential
production, expectations regarding growth, oil and gas prices, drilling
and completion activities, drilling locations, including timing thereof,
the Company's or management's intentions, beliefs, expectations, hopes,
projections, assessment of risks, estimations, plans or predictions for
the future, results of the Company's strategies and other statements
that are not historical facts are forward-looking statements that are
based on current expectations. Although the Company believes that its
expectations are based on reasonable assumptions, it can give no
assurance that these expectations will prove correct. Important factors
that could cause actual results to differ materially from those in the
forward-looking statements include assumptions regarding satisfaction of
closing conditions of the acquisition, failure of the acquisition to
close, failure to realize the anticipated benefits of the acquisition,
effects of purchase price adjustments, market conditions, integration
and other acquisition risks, results of typical post-signing diligence,
exercise of third party purchase rights under area of mutual interest
provisions under joint operating agreement, the results and timing of
settlement of the proposed equity offering or alternate financing,
midstream agreement provisions, transportation issues, well costs,
estimated recoveries, results of wells and testing, failure of actual
production to meet expectations, results of infrastructure program,
performance of rig operators, spacing test results, availability of
gathering systems, costs and availability of oilfield services, actions
by governmental authorities, joint venture partners, industry partners,
lenders and other third parties, actions by purchasers or sellers of
properties, risks and effects of acquisitions and dispositions, market
and other conditions, risks regarding financing, capital needs,
availability of well connects, capital needs and uses, commodity price
changes, effects of the global economy on exploration activity, results
of and dependence on exploratory drilling activities, operating risks,
right-of-way and other land issues, availability of capital and
equipment, weather, and other risks described in the Company's Form 10-K
for the year ended December 31, 2017 and its other filings with the U.S.
Securities and Exchange Commission. There can be no assurance any
transaction described in this press release will occur on the terms or
timing described, or at all. In addition, the information regarding the
acquisition in this press release assumes the party to a joint operating
agreement with the Company does not exercise its right to purchase 20%
of the acreage covered by the area of mutual interest after the closing
of the acquisition.

This press release shall not constitute an offer to sell, or a
solicitation of an offer to buy, any securities.

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