Under the deal, Carrizo has purchased around 16,508 net acres situated in the Delaware Basin in Reeves and Ward Counties.

The transaction included the $75m performance deposit, which is subject to customary purchase price adjustments.

In addition, Carrizo has agreed to pay an additional $50m per year, if WTI averages more than $50/Bbl in any calendar year between 2018 and 2021.

The acquired assets are currently generating around 500 Boe/d, including 48% oil and 67% liquids, from 14 gross wells.

Out of the five rigs currently operating on the ExL assets, four rigs are expected to be released after their current well.

Carrizo intends to use two newer-vintage rigs at the acreage during the first schedule, which is expected to start later this month.

The deal will allow Carrizo to increase its acreage in the Delaware Basin to around 42,500 net acres on a pro forma basis.

According to Carrizo, recent successful horizontal wells on the target properties have significantly de-risked three target zones, including Wolfcamp A, Upper Wolfcamp B and Lower Wolfcamp B.

Houston-based Carrizo Oil & Gas is involved in the exploration, development, and production of oil and gas from resource plays situated in the US.

The company is currently operating in the Eagle Ford Shale in South Texas, Delaware Basin in West Texas, the Niobrara Formation in Colorado, Utica Shale in Ohio and Marcellus Shale in Pennsylvania.