Carrizo Oil and Gas (CRZO) formed a joint venture with Avista Capital Partners to purchase and develop leasehold that is prospective for the Utica Shale. The venture is primarily looking for leasehold in the liquids portion of the play and recently closed on the acquisition of 15,000 net acres in Ohio and Pennsylvania at an average cost of $1,500 per acre.
Carrizo Oil and Gas will own an initial 10% interest in the joint venture but holds two purchase options to increase its interest to 50% over the next eighteen months. Carrizo Oil and Gas will also be the operator of the joint venture.
