Carrizo Oil & Gas, the seventh-largest producer in the Barnett Shale last year, said Wednesday it agreed to sell its remaining holdings in the field, which include a high-profile, 22-well pad on the campus of the University of Texas at Arlington. It is part of the Houston-based company's move to dispose of what it called non-core assets, which also includes production in East Texas and undeveloped acreage in the Marcellus Shale. The transaction with an unnamed buyer is valued at $268 million. It will use the proceeds to repay debt and fund part of its 2013 operations, primarily in the Eagle Ford Shale in South Texas.
Carrizo said the deal includes about 9,000 net acres in the Barnett, mostly in southeast Tarrant County, that had 303.5 billion cubic feet of reserves as of the end of 2012 and current production of about 44 million cubic feet a day.
That deal is expected to close by late October and will have an effective date of July 1. Carrizo in March 2012 sold 12,000 acres and 110 producing wells for $190 million to Atlas Resource Partners.
Other asset sales include acreage and production in the Camp Hill field in East Texas and 2,850 acres in the Marcellus, where it holds more than 68,000 acres.
Carrizo CEO Chip Johnson called it "a bittersweet day for Carrizo, as the Barnett Shale started the company's transformation into an unconventional resource player back in 2003. While we've had a great run in the 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." He said the sales will help underwrite Eagle Ford spending as well as activity next year in Ohio's Utica Shale.
-- Jim Fuquay