Current Events/News Releases

Today Carrizo Oil & Gas announced that it is entering the Utica Shale Play by way of a Joint Venture with Avista Capital Partners. There are 15,000 acres involved and Carrizo is paying $1,500 per  acre for ONLY 10% interest. You do the math. What would the value per acre be for 100% interest?

http://www.msnbc.msn.com/id/44727794

Randy

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Replies to This Discussion

Permalink Reply by SA Frank on September 30, 2011 at 12:33pm
You misread.  It is an average cost of $1,500/acre, this is not surprising for NW PA.
Permalink Reply by Randall P King on September 30, 2011 at 12:57pm

Carrizo paid $1,500 per acre for 10%. The key here is they paid that for only 10%.

But, if you feel that NW Pa is the majority of these leases, how did Avista acquire the 15,000 acres?

Randy

Permalink Reply by Randall P King on September 30, 2011 at 1:10pm
Permalink Reply by Utica Shale on September 30, 2011 at 1:30pm

The JOINT VENTURE paid $1,500 per acre (avg) for 15,000 acres.
The total amount of Royalties PAID to the land owners by the Joint Venture was $22,500,00.

" ...The JV has closed on its first acquisition of 15,000 net acres in eastern Ohio and northwestern Pennsylvania at an average cost of less than $1,500 per acre. Under the terms of the agreement, Carrizo will own an initial 10% interest in the joint venture properties with Avista owning the remaining 90%..."

Carrizo receives 10% of the lease profits
Avista receives 90% of the lease profits


The article did not state how much either party actually paid for their share of the Joint Venture.

 

Permalink Reply by Randall P King on September 30, 2011 at 5:12pm

Gregory, I agree with your explanation. Do you know what Ohio counties were involved?

Randy

Permalink Reply by Craig Stull on October 18, 2011 at 3:42pm

Randall,

Carrizo just bought up some leases here in Trumbull county a couple of weeks ago from cobra leasing. If I  had to take a guess it is probably at least 5000 acres mainly in the northern part of county. 

Permalink Reply by Mickgyver on October 1, 2011 at 1:41am

This is now more inline with the various other past leases .Here is little bit of Ohio information for information purposes Also here is a little glimpse of the future if the production is as good as it has been in Ohio.   One interesting point is although the corporations need to show proof of what the wells are doing even though it makes the land value increase it also causes their stock value to increase which brings in additional investors to contribute to the production phase of the oil wells . In addition when the land values go up per acre ,even if they are required to pay the landowner more this enables them to use their leases for various acquisitions of capital and partners since this acreage has a certain assigned value  here is the nice lease website. Hope all goes well for you folks .


http://mysite.verizon.net/hlgasgroup/files/Hidden_Lakes_XTO_Lease_F... same xto lease



Permalink Reply by Randall P King on October 1, 2011 at 9:18am
Permalink Reply by Randall P King on October 1, 2011 at 9:47am

AT informs me that the bottom two links don't work. They must be blocked . My apologies.

Randy

Permalink Reply by Randall P King on October 6, 2011 at 1:04pm

Someteresting reading regarding Chesapeake if you have the time.

http://blogs.forbes.com/christopherhelman/

Randy

Permalink Reply by Randall P King on October 9, 2011 at 11:00am

New info on the Smith-Goshen / Bemont County group. 40,000 acres should = good bargaining power.

http://www.theintelligencer.net/page/content.detail/id/560240.html

Randy

Permalink Reply by Randall P King on October 13, 2011 at 12:19pm

Consol issued an operations update today. Notice the number of wells that they are putting on a pad, as well as a few other nuggets of info.

http://phx.corporate-ir.net/phoenix.zhtml?c=66439&p=irol-newsAr...=

Randy

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