Carrizo Oil and Gas (CRZO) announced the acquisition of 13,000 net acres of leasehold in Texas that is prospective for the Eagle Ford Shale. This brings the company’s total exposure to 33,000 net acres.
Carrizo Oil and Gas said that the acquired acreage is in the condensate area of the Eagle Ford Shale in La Salle County, Texas. The company said that the upfront cash cost will be $21.45 million or $1,650 per acre and the total cost including the future drilling carry will “fall below $5,500 per acre on a present value basis.”
Carrizo Oil and Gas is moving an additional rig into the Eagle Ford Shale to help develop the additional acreage, bringing its operated rig count in the play to three. This rig will start drilling the Ivey Ranch 10H well in Dimmit County.
Carrizo Oil and Gas is not raising its production guidance yet until the company can finalize and contract for additional hydraulic fracturing capacity in the Eagle Ford Shale.
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