I think this a good move for Carrizo. I want them to stay focused on the Eagle Ford and Niobrara. My guess is that they will also sell their interests in the North Sea. - Dan
HOUSTON, October 15, 2012 - Carrizo Oil & Gas, Inc. (Nasdaq: CRZO) today announced the closing of the
sale of the majority of its mineral lease position in the northern portion of the Utica Shale play to an unrelated third
party for net cash proceeds of $43 million. Immediately preceding the property sale, Carrizo elected to exercise a
mineral lease purchase option to increase its ownership from a 10% to a 50% undivided interest in the same
properties from a subsidiary of its financial partner, Avista Capital Holdings, L.P. The mineral leases are located in
Mercer and Crawford Counties in Pennsylvania and Trumbull County in Ohio. The net cash proceeds realized by
Carrizo from these transactions are subject to customary post-sale adjustments. Other assets included in the sale are
an existing drilling pad and approved well drilling permits associated with the leases.
Carrizo will continue to own a 10% undivided interest, along with a similar option to increase its ownership to
50%, in nearly 26,000 additional gross acres located in the southern portion of the play, primarily in Guernsey
County, Ohio, in proximity to recent encouraging industry drilling results.
Borrowing Base Redetermination
Carrizo announced today that its banking syndicate has agreed to increase the Company’s borrowing base under its
senior credit facility from $325 million to $365 million as part of a regularly scheduled borrowing base review with
an effective date of September 27, 2012. The new borrowing base takes into consideration the effect of the recent
sale of Gulf Coast properties and the Niobrara joint venture agreement. The credit facility is currently undrawn.