Carrizo Oil & Gas, Inc. (NASDAQ: CRZO) announced that it is selling its wholly owned subsidiary Carrizo UK Huntington Limited, and all of its interest in the Huntington Field in the UK North Sea to a subsidiary of Iona Energy Inc. (TSXV:INA) for a cash consideration of $184 million.
As quoted in the press release:
Carrizo expects to net approximately $116 million, after payment of approximately $70 million to retire and close our UK credit facility, working capital adjustments and transaction related costs. This transaction is expected to close on or before the end of January, and is subject to customary closing conditions and purchase price adjustments.
Carrizo’s President and CEO, S. P. “Chip” Johnson, said:
Now that the project is close to first production and its value much more tangible, our reinvestment opportunities for the net proceeds from this sale are so compelling that we have made the decision to harvest our investment. We expect to apply the net proceeds of this transaction to fund a portion of our 2013 capital investment needs and for other general corporate purposes.
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