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Carrizo Oil and Gas (CRZO) agrees to sell its interest in the Huntington Field in the U.K. North...

Carrizo Oil and Gas (CRZO) agrees to sell its interest in the Huntington Field in the U.K. North Sea to Iona Energy (IONAF.PK) for $184M. CRZO expects to apply the proceeds from the sale to fund part of its 2013 capital investment needs and pay down debt.
Comments (1)
  • indytom01
    , contributor
    Comments (44) | Send Message
     
    I understand they need the cash to fund the 2013 drilling program, particularly with starting a rig in the Utica. However, is selling this property to net $116 mil when it was projected to produce $70 million in revenue in the first year a great deal? How quickly will they be able to replace that $70 million in new production from the reinvestment of that $116 mil? I suppose management feels this is the best way to raise the required cash, but sure seems like that would have been a nice property to hang on to. Hopefully, by this time next year, CRZO's cash flow will have reached that critical mass where they do not need to do these deals.
    28 Dec 2012, 11:34 AM Reply Like
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