Carrizo, Avista to develop Utica Shale acreage

Carrizo Oil & Gas and Avista Capital Partners have entered a joint venture agreement to acquire and develop acreage in the Utica Shale unit of the Appalachian Basin.

According to the agreement, Carrizo will own a 10% interest in the joint venture and Avista will own the remaining 90% interest.

Avista will have the right to provide $130m in funds for the partnership, with the ability to raise the amount by an incremental $70m.

Carrizo will initially serve as operator of the properties and will provide management services to Avista.

Carrizo will also have two purchase options to increase its participating interest to 50% in properties acquired by the joint venture over the next 18 months.