Houston firm makes public offering to buy $215 million in holdings from Devon Energy

Hours after announcing it had paid $215 million for 9,600 net acres in the Delaware Basin sold by Oklahoma City’s Devon Energy, Houston-based Carrizo Oil and Gas saw a drop in trading of shares.

It totaled 6.4 % and came as the company also announced it was launching a public offering of 9.5 million shares to help fund the acquisition. The purchase also increased the company’s Delaware Basin acreage position to 46,000 net acres. The new acquisition involves land in Reeves and Ward counties and most of it is adjacent to Carrizo’s existing areage.

The holdings have a net production of nearly 2,500 Boe/d and 60% of it is oil. It also includes more than 100 net potential de-risked drilling locations in the Wolfcamp A and B as well as salt-water disposal wells that can be integrated into Carrizo’s operations.

The public offering involved shares at a price to the public of $23 a share and the total gross proceeds would be nearly $218.5 million.

Carrizo Oil & Gas, Inc. is a Houston-based energy company actively engaged in the exploration, development, and production of oil and gas from resource plays located in the United States. Carrizo’s current operations are principally focused in proven, producing oil and gas plays primarily in the Eagle Ford Shale in South Texas and the Permian Basin in West Texas.