Carrizo Oil and Gas Enter Utica Shale, Leasing
Carrizo Oil and Gas recently announced that it has entered in to a joint venture with Avista Capital Partners on 15,000 acres in the condensate rich portion of the Utica shale. The JV acreage is in eastern Ohio and northwestern Pennsylvania, where the main Utica shale liquids play is occurring. The company reported in an Oct, 13, 2011 investor presentation that they are in the early stages of a land acquisition program, with a budget of between $130 and $200 million. The agreement will give Avista Capital Partners a 90% share of Utica shale acreage. Carrizo holds two purchase options to increase its participating interest to 50% in the properties acquired by the joint venture over the next 18 months.
In the Eagle Ford shale, a very similar, liquids rich play in South Texas, Carrizo recently took on GAIL India, as a 20% partner in acreage in LaSalle county. Carrizo controls approximately 41,000 net acres in the Eagle Ford shale play. This mid size oil and gas exploration company has a highly successful track record in horizontal shale plays, including the Barnett shale and Marcellus shale.
Where Carrizo Oil and Gas – Avista Capital Partners Are Leasing In The Utica Shale
The map below, from Carrizo Oil and Gas, shows the “buy area” where the JV partnership is leasing and buying land, along with the existing 15,000 acres in Trumbull and Mercer counties. The Carrizo JV Utica shale “buy area”, includes Trumbull, Mahoning, Columbiana, Carroll, Portage, Jefferson, Harrison and a small part of Belmont counties in Ohio, as well as Mercer and Lawrence counties of Pennsylvania.