As per the agreement, Sumitomo will participate on a promoted basis in the completion of 18 drilled wells and the drilling and completion of 12 more wells under similar terms. Moreover, Sumitomo has the right to participate, on a promoted basis and at the same working interest, in up to 56 future wells within these units.
S. Johnson IV, president and CEO of Carrizo, said: “We are excited to enter into this strategic joint venture with Sumitomo Corporation. We view Sumitomo as a strong partner that will permit us to opportunistically accelerate drilling in our core Barnett Shale development area. We believe that this joint venture relationship with Sumitomo also has the potential to expand into other exciting resource plays as well.”
After the application of the net proceeds from the transaction to repay borrowings outstanding under the credit facility, the current outstanding balance under the credit facility has been reduced to $187m.
