Carrizo Oil & Gas, Inc. Announces Sale of its Mansfield Gas Pipeline and Gathering System
HOUSTON, Oct. 20 /PRNewswire-FirstCall/ – Carrizo Oil & Gas, Inc. (Nasdaq: CRZO) announced today the closing of the sale of its Mansfield pipeline and gathering system in Tarrant County, Texas to Delphi Midstream Partners, LLC for net proceeds of $34.7 million, including a working capital adjustment of approximately $1.2 million. Net proceeds from the sale will be used to reduce the debt outstanding under Carrizo’s Senior Credit Facility.
The Mansfield pipeline system, constructed by Carrizo to gather and transport natural gas from the Company’s Southeast Tarrant County operating area, consists of 19 miles of 6, 8 and 10 inch diameter pipe with a current maximum takeaway capacity of 70 Mmcf/day. The system also includes an associated compression/dehydration facility that was included in the transaction. Over the 30 days preceding the date of sale, the pipeline transported an average of 55 Mmcf/day. Carrizo has also entered into an agreement to continue to operate the Mansfield pipeline system on Delphi Midstream’s behalf.
Sanders Morris Harris was Carrizo’s financial advisor for this transaction.
Carrizo Oil & Gas, Inc. is a Houston-based energy company actively engaged in the exploration, development, exploitation, and production of oil and natural gas primarily in the Barnett Shale in North Texas, the Marcellus Shale in Appalachia, and in proven onshore trends along the Texas and Louisiana Gulf Coast regions. Carrizo controls significant prospective acreage blocks and utilizes advanced drilling and completion technology along with sophisticated 3-D seismic techniques to identify potential oil and gas drilling opportunities and to optimize reserve recovery.
Statements in this news release relating to use of proceeds, net proceeds and other statements that are not historical facts are forward-looking statements that are based on current expectations. Although Carrizo believes that its expectations are based on reasonable assumptions, it can give no assurance that these expectations will prove correct. Important factors that could cause actual results to differ materially from those in the forward-looking statements include post-closing working capital requirements, market and other conditions, capital needs and uses and other risks described in Carrizo’s Form 10-KA for the year ended December 31, 2008 and its other filings with the Securities and Exchange Commission.
Contact: Carrizo Oil & Gas, Inc. Richard Hunter, Vice President of Investor Relations Paul F. Boling, Chief Financial Officer (713) 328-1000
SOURCE Carrizo Oil & Gas, Inc.