Carrizo Oil & Gas Announces Sale of Its Interest in the Huntington Field in the UK North Sea for $184 Million

Fri Dec 28, 2012 6:30am EST

* Reuters is not responsible for the content in this press release.

HOUSTON, TX, Dec 28 (Marketwire) -- 
Carrizo Oil & Gas, Inc. (NASDAQ: CRZO) today announced that it has
entered into a definitive agreement to sell 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. (TSX
VENTURE: INA) for a cash consideration of $184 million. 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 President and CEO, S. P. "Chip" Johnson, IV commented on the
sale, "It has been a long and bumpy road for all participants in this
project since Carrizo geologists defined the Huntington exploration
prospect and our partners drilled the discovery wells; 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."

    Carrizo Oil & Gas, Inc. is a Houston-based energy company actively
engaged in the exploration, development, and production of oil and gas
primarily in the United States and United Kingdom. Our current operations
are principally focused in proven, producing oil and gas plays primarily
in the Eagle Ford Shale in South Texas, the Niobrara Formation in
Colorado, the Barnett Shale in North Texas, and the Marcellus Shale in
Pennsylvania, New York and West Virginia.

    Statements in this news release that are not historical facts, including
but not limited to those related to timing and levels of production,
production mix, the proposed sales transaction (including timing,
purchase price, adjustments, net receipts and effects thereof), the
Company's or management's intentions, beliefs, expectations, hopes,
projections, assessment of risks, estimations, plans or predictions for
the future, results of the Company's strategies, timing of completion and
drilling of wells, and other statements that are not historical facts are
forward-looking statements that are based on current expectations.
Although Carrizo believes that its expectations are based on reasonable
assumptions, it can give no assurance that these expectations will prove
correct. Important factors that could cause actual results to differ
materially from those in the forward-looking statements include purchase
price adjustments, actions by the purchaser and other actions by
governmental authorities, joint venture partners, industry partners,
lenders and other third parties, market and other conditions, capital
needs and uses, commodity price changes, effects of the global economy on
exploration activity, results of and dependence on exploratory drilling
activities, operating risks, right-of-way and other land issues,
availability of capital and equipment, weather, and other risks described
in Carrizo's Form 10-K for the year ended December 31, 2011 and its other
filings with the Securities and Exchange Commission.

    

Contact: 
Carrizo Oil & Gas, Inc.
Richard Hunter
Vice President of Investor Relations
Paul F. Boling
Chief Financial Officer
(713) 328-1000 

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