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Carrizo Oil & Gas acquires core Permian position from private player ExL for US$648 million


Carrizo Oil & Gas acquires core Permian position from private player ExL for US$648 million

Report summary

Carrizo Oil & Gas acquired 16,488 net acres in the core of the Delaware Basin from private operator ExL Petroleum for US$648 million in cash, potentially rising to US$753 million contingent WTI annual averages. Carrizo is acquiring West Texas assets, located in Reeves and Ward counties, which are 20 to 30 miles east of Carrizo's current Permian operations. The contiguous position includes flowing production of approximately 8,000 boe/d (48% oil) from 11 existing horizontal wells. Carrizo's deal consideration equates to US$22,300 per acre (adjusted for flowing production at US$35,000 per boe/d), or US$28,700 per acre including maximum contingent payments. The per acre price is in line with recent deals in the vicinity including acquisitions by Centennial Resources, Callon Petroleum and Occidental.

What's included?

This report includes 1 file(s)

  • Carrizo Oil & Gas acquires core Permian position from private player ExL for US$648 million PDF - 411.11 KB 7 Pages, 7 Tables, 1 Figures

Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions

In this report there are 8 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Carrizo and ExL Delaware Basin wells
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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