Carrizo Oil & Gas Closes Delaware Basin Acquisition

Carrizo Oil & Gas said early Friday it has completed the purchase of about 16,508 net acres located in the Delaware Basin in Reeves and Ward Counties, Texas, for about $648 million in cash. The company has also agreed to pay an additional $50.0 million per year if the average daily closing spot West Texas Intermediate crude oil price, as measured by the U.S. Energy Information Administration (EIA), is above $50 per barrel for any of the calendar years of 2018, 2019, 2020, and 2021.

This payment will be zero for the respective year if the EIA’s WTI average price is $50 per barrel or below for any of such years, and is capped at and will not exceed $125.0 million.