Carrizo Oil & Gas, Inc. and Avista Capital Partners Announce Formation of Joint Venture in Utica Shale

Carrizo Oil & Gas, Inc. (NASDAQ: CRZO) and Avista Capital Partner have entered into a joint venture to acquire and develop acreage in the liquids rich region of the Utica Shale.

The press release is quoted as saying:

The JV has closed on its first acquisition of 15,000 net acres in eastern Ohio and northwestern Pennsylvania at an average cost of less than $1,500 per acre. Under the terms of the agreement, Carrizo will own an initial 10% interest in the joint venture properties with Avista owning the remaining 90%. Avista has the right to contribute aggregate funds of up to $130 million to the joint venture, with the ability to raise this amount by an incremental $70 million.

Carrizo’s President and CEO, S. P. “Chip” Johnson, IV commented:

“We are excited about this joint venture with Avista which should allow both companies to quickly grow a meaningful position in one of the highest potential liquids-rich shale plays in the U.S.”

Click here to access the entire press release