52.1 F
Fort Worth
Saturday, November 28, 2020
Energy Carrizo to sell remaining Barnett assets

Carrizo to sell remaining Barnett assets

Other News

Closing prices for crude oil, gold and other commodities

The Associated Press Benchmark U.S. crude oil for September delivery rose 31 cents to settle at $41.60 a barrel Monday. Brent crude oil for...

Trump to discuss energy, tour oil rig, raise money in Texas

By DARLENE SUPERVILLE Associated PressWASHINGTON (AP) — President Donald Trump will shift his focus to American energy dominance during a stop in Texas later...

Basic Energy Services makes organizational changes

Fort Worth-based Basic Energy Services, Inc. (OTCQX: BASX) in late May announced the implementation of changes to the organizational structure of the company, reducing...

Texas oil producers were cutting output before Railroad Commission chose not to, Commissioner Christi Craddick says

By Cassandra PollockMay 12, 2020 Texas Railroad Commissioner Christi Craddick on Tuesday doubled down on the agency’s recent decision to not cut oil production and...
Robert Francis
Robert is a Fort Worth native and longtime editor of the Fort Worth Business Press. He is a former president of the local Society of Professional Journalists and was a freelancer for a variety of newspapers, weeklies and magazines, including American Way, BrandWeek and InformatonWeek. A graduate of TCU, Robert has held a variety of writing and editing positions at publications such as the Grand Prairie Daily News and InfoWorld. He is also a musician and playwright.

A. Lee Graham

Reporter

 

Carrizo Oil & Gas Inc. of Houston plans to sell its remaining Barnett Shale properties, as well as other non-core assets in East Texas and the Marcellus Shale.

 

“This is a bittersweet day for Carrizo, as the Barnett Shale started the company’s transformation into an unconventional resource player back in 2003,” said president and CEO S.P. “Chip” Johnson IV, commenting in a news release.

 

The Barnett sale is part of the company’s plan to sell certain non-core assets, including all of its interest in the Camp Hill Field in East Texas and certain undeveloped acreage in the Marcellus Shale, for about $268 million, including aggregate cash proceeds totaling about $250.4 million.

 

The transactions are subject to customary closing conditions and purchase price adjustments, as well as the assumption from buyers of certain liabilities and contractual commitments.

 

Carrizo said it plans to use net proceeds from the sale transactions to repay borrowings under its revolving credit facility, as well as fund part of its remaining 2013 capital expenditures program, largely in the Eagle Ford Shale.

 

The Barnett Shale divestiture includes about 9,000 net acres primarily in Southeast Tarrant County with year-end 2012 proved reserves of 303.5 billion cubic feet. Current net production from the assets is about 44 million cubic feet per day.

 

Closing of the transaction is expected by late October, with an effective date of July 1, 2013. Acting as the company’s financial adviser in the transaction was Evercore Partners, with Baker Botts acting as outside legal counsel.

 

The Camp Hill divestiture includes year-end 2012 proved reserves totaling about 1 million barrels. It also has an effective date of July 1, 2013 and is expected to close shortly. The Marcellus Shale divestiture mainly includes 2,850 net undeveloped acres in non-core areas of the play and is expected to close in the fourth quarter.

 

“While we’ve had a great run in the [Barnett] play, and worked with some great partners, we believe the sale of these assets is a natural step in our continued shift towards premier oil and liquids-rich plays,” Johnson said.

 

Cash proceeds from the divestitures are expected to improve the company’s balance sheet metrics and should “more than cover” its remaining spending gap for the year, Johnson said.

 

Carrizo Oil & Gas Inc. develops and produces oil and gas from resource plays in the United States. More information is available at www.crzo.net.

 

lgraham@bizpress.net

 


close






Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox.

We don’t spam! Read our privacy policy for more info.

Latest News

Venezuela judge convicts 6 American oil execs, orders prison

By SCOTT SMITH ASSOCIATED PRESSCARACAS, Venezuela (AP) — Six American oil executives held for three years in Venezuela were found guilty of corruption charges...

Fort Worth firm acquired by Abilene-based Petrosmith

Abilene-based Petrosmith, a leading provider of production equipment and oilfield tubular goods, has acquired the assets of Wellflex Energy Solutions LLC, an engineering, procurement...

Oil companies snag Gulf of Mexico waters for offshore drilling in last bid before Biden transition

In the last opportunity for oil companies to bid on federal Gulf of Mexico waters under a Trump administration, the federal government on Wednesday...

Texas official selected as vice chairman of Interstate Oil and Gas Compact Commission

Railroad Commissioner Wayne Christian was selected to be vice chairman of the Interstate Oil and Gas Compact Commission (IOGCC) at the organization’s virtual meeting....

Alaska loses 3,000 oil, gas jobs during pandemic, price drop

ANCHORAGE, Alaska (AP) — The Alaska Department of Labor and Workforce Development reported that the state has lost more than 3,000 jobs in the...