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.