Carrizo sells Mansfield pipeline system for $34.7M

Carrizo Oil & Gas sells Mansfield pipeline system to Delphi Midstream for $34.7 million

• On 1:41 pm EDT, Tuesday October 20, 2009

HOUSTON (AP) -- Carrizo Oil & Gas Inc. on Tuesday said it sold its Mansfield pipeline and gathering system to Delphi Midstream Partners LLC, resulting in $34.7 million in net proceeds.

The independent crude oil and natural gas producer said it plans to use the proceeds to pay off debt.

The Mansfield pipeline system was built by Carrizo to gather and transport natural gas from the company's Southeast Tarrant County, Texas operating area. The system has 19 miles of pipe with a maximum capacity of 70 million cubic feet of gas per day. The deal includes the sale of an associated compression/dehydration facility and an agreement by Carrizo to operate the Mansfield pipeline system for Delphi Midstream.

Shares of Carrizo fell $1.41, or 4.7 percent, to $27.79 in afternoon trading.