AP News

Carrizo Oil sells some Texas assets for $250M

HOUSTON (AP) — Carrizo Oil & Gas said Wednesday it is selling some natural gas assets in Texas and Appalachia for $250.4 million in cash.

The company said it sold its remaining assets in the Barnett Shale in Texas and non-core assets in the East Texas Shale and Marcellus Shale in Appalachia. It did not disclose the name of the buyers. Carrizo said the total deal is worth $268 million including debt and contractual commitments that will be assumed by the buyers.

Carrizo Oil & Gas Inc. said it plans to use the proceeds to repay debt and fund some of its capital spending, mostly in the Eagle Ford Shale of South Texas.

"We believe the sale of these assets is a natural step in our continued shift towards premier oil and liquids-rich plays," said S.P. "Chip" Johnson, IV, Carrizo's President and CEO, in a statement. "The cash proceeds from the divestitures will also further improve our balance sheet metrics and should more than cover our remaining spending gap for the year. This puts us in a strong position to continue our Eagle Ford Shale and Niobrara developments, as well as ramp up our Utica Shale activity in 2014."

Shares of Carrizo lost 88 cents, or 2.5 percent, to $34 in midday trading.

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