As per the agreement, Carrizo will hold an initial 10% interest in the joint venture properties with Avista possessing the remaining 90%
Avista has the right to give aggregate funds of up to $130m to the joint venture, with the ability to move up this amount by a $70m incremental.
In addition, Carrizo holds two purchase options to amplify its participating interest to 50% in the properties acquired by the joint venture.
Carrizo will initially serve as operator of the joint venture properties and will provide certain management services to Avista related to the joint venture.
