(Source: Datamonitor)
US-based Carrizo Oil & Gas has finalized the sale of its Mansfield pipeline and gathering system in Tarrant County, Texas to Delphi Midstream Partners for net proceeds of $34.7 million, including a working capital adjustment of approximately $1.2 million.
The company has said that the net proceeds from the sale will be used to reduce the debt outstanding under Carrizo's senior credit facility.
The Mansfield pipeline system, constructed by Carrizo to gather and transport natural gas from the company's Southeast Tarrant County operating area, consists of 19 miles of six, eight and 10-inch diameter pipe with a current maximum takeaway capacity of 70 million cubic feet per day (mmcf/day).
The system also includes an associated compression/dehydration facility that was included in the transaction. Over the 30 days preceding the date of sale, the pipeline transported an average of 55mmcf/day.
Carrizo has also entered into an agreement to continue to operate the Mansfield pipeline system on Delphi Midstream's behalf.
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