Carrizo Oil & Gas, Inc. recently signed an agreement to sell an interest in some of its oil and gas properties to the Sumitomo Corporation for $15.7 million.
Sumitomo Corporation will receive a 12.5% interest in 16 drilling units located in the Barnett Shale in the Fort Worth Basin in North Texas. Each drilling unit comprises multiple existing and future well locations.
The company also renegotiated its borrowing base with its lenders, raising the base from $284 to $350 million. The extra liquidity provided by the agreement with Sumitomo Corporation and the increased borrowing will allow the company to complete its capital plan in 2010.
Carrizo Oil & Gas, Inc. is an oil and gas exploration and production company located in Houston, TX. The company has proved reserves of 502.6 Bcfe as of the end of 2008, and its average daily production of natural gas in 2009 is estimated to be 89 million cubic feet equivalent per day.
The company’s core properties are located in the Barnett Shale where Carrizo Oil & Gas, Inc. has 60,000 net acres under lease.