Carrizo previously announced that it had entered into agreements to sell substantially all of its assets in the Utica Shale and Marcellus Shale for cash proceeds of $62 million and $84 million, respectively.
Net production from these assets was 661 Boe/d (28% oil, 50% liquids) and 36,722 Mcf/d, respectively, during the third quarter of 2017. The sale of the Company's Utica Shale assets closed on November 15, 2017, while the sale of the Company's Marcellus Shale assets closed on November 21, 2017.
The company received a combined total of approximately $128 million at the closings of the two dispositions, which excludes the previously-received deposit.
On November 20, 2017, Carrizo entered into an agreement to sell substantially all of its assets in the DJ Basin for $140 million in cash, subject to customary closing terms and conditions. Additionally, Carrizo could receive contingent payments of up to $15 million in the aggregate based on crude oil prices exceeding certain thresholds over the next three years.
The company noted that the sale of the DJ Basin assets is another step towards achieving its leverage reduction goals and positioning Carrizo to be able to deliver strong, high-return production growth within cash flow.
Carrizo Oil & Gas 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.
The company's current operations are principally focused in proven, producing oil and gas shales primarily in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Niobrara Formation in Colorado, the Utica Shale in Ohio, and the Marcellus Shale in Pennsylvania.
However, the Eagle Ford and Delaware are its two main areas. As of the end of 2016, its Eagle Ford assets made up 81% of the company's total proven reserves.
When the company reported third quarter results on November 7, the company reported that production volumes during the third quarter of 2017 were 5,080 MBoe, or 55,224 Boe/d, an increase of 35% versus the third quarter of 2016.
The year-over-year production growth was driven by drilling activity in the Eagle Ford Shale and Delaware Basin plus the addition of production from the Sanchez property acquisition in late 2016 and the ExL property acquisition during the quarter.
Looking ahead, the company will evaluate expanding its asset divestiture program possibly to use for debt reduction.