Carrizo Oil & Gas Inc. sold its oil and natural gas assets in Ohio’s Utica Shale for $62 million to an undisclosed buyer, with the potential for an additional $15 million depending on future oil prices according to Seeking Alpha.
The company made the sale to focus on its Delaware Basin and Eagle Ford assets, which are able to deliver strong returns at low oil prices. The sale of its Utica assets is expected to be the first in a series of assets sales as Carrizo continues to narrow its focus.
The Utica Shale property included in the deal is mostly undeveloped acreage, around 25,900 net acres, in the rich condensate window. The value of these assets is mainly in future development opportunities at higher prices.