The JV has also completed its first acquisition of 15,000 net acres in eastern Ohio and northwestern Pennsylvania.
Carrizo will own an initial 10% interest in the JV properties, while Avista will hold the remaining 90% stake.
Avista has the right to contribute aggregate funds of up to $130m to the JV, with the ability to raise this amount by an incremental $70m.
Carrizo also holds two purchase options to increase its participating interest to 50% in the properties purchased by the JV over the next 18 months.
If the options are not exercised, the company will be entitled to share in any cash distributions by Avista to its partners, provided specified return on investment thresholds on Avista’s investment are achieved.
Carrizo will initially operate the JV properties and will provide certain management services to Avista related to the JV.
