Carrizo Oil and Gas (CRZO) reported that the company is selling acreage in Texas that is currently producing from the Barnett Shale formation.
Carrizo Oil and Gas is selling 13,000 acres to KKR Natural Resources for $104 million. The properties have 75 gross or 58.5 net wells with gross production of 15.7 million cubic feet of natural gas equivalents per day (8.3 million on a net basis). Proved reserves total 122.4 Bcfe of which 55% are proved undeveloped.
Carrizo Oil and Gas said that the proceeds will be used to reduce borrowings on its credit line and help fund its 2011 capital budget.