Houston-based exploration and production firm Carrizo Oil & Gas is selling a United Kingdom subsidiary and its stake in a North Sea offshore oil field to a unit of Iona Energy for $184 million in cash.
The deal to sell Carrizo UK Huntington Ltd. and all of its interest in the Huntington Field, announced Friday, is expected to close by the end of January.
Houston-based Carrizo said it expects to net $116 million, after certain costs and adjustments are factored in.
Carrizo chief S. P. “Chip” Johnson IV said in a statement that the project has endured a long and bumpy road, and it is in the best interest of the company to sell.
“Now that the project is close to first production and its value much more tangible, our reinvestment opportunities for the net proceeds from this sale are so compelling that we have made the decision to harvest our investment,” Johnson said.
Carrizo is involved in the exploration, development and production of oil and gas, mainly in the United States and United Kingdom. It has operations in the Eagle Ford Shale in South Texas, the Niobrara Formation in Colorado, the Barnett Shale in North Texas, and the Marcellus Shale in Pennsylvania, New York and West Virginia.