Not an acquirer by nature, Carrizo Oil & Gas Inc. (NASDAQ: CRZO) couldn’t resist a deal for 100% working interest of its operated properties within the Eagle Ford Shale's oil window.

In a $250 million transaction announced Oct. 27 by Houston’s Carrizo, the company said it completed the purchase of additional leasehold and producing interests in acreage primarily located in LaSalle, Atascosa and McMullen counties, Texas, from Eagle Ford Minerals LLC.

The company also gained 6,820 net acres, 100% operated by Carrizo, that increases its profile to more than 81,000 net acres in the Eagle Ford.

The company's president and CEO, S.P. "Chip" Johnson IV, said that while Carrizo has not historically been active in the acquisition of producing properties, the company felt this was the perfect deal.

"The acquisition adds an incremental 25% working interest in three of our four highest-return areas within the Eagle Ford Shale, and adds a significant amount of undrilled potential in addition to the existing production," Johnson said.

The acquisition increases its drilling inventory in the play by 93 net wells to more than 915 net locations.

The acreage is in the RPG, Irvin Ranch and Pena project areas and centrally located in the most prospective portion of the Eagle Ford Shale's volatile oil window. The area has some of the highest EUR's and internal rate of returns of Carrizo’s entire Eagle Ford Shale portfolio.

The company said on its website it elected to restrict its land acquisitions in the Eagle Ford to the volatile oil window in the central portion of the trend because it considers it the best target for light oil.

Third quarter net production from the acquired properties was about 2,670 barrels of oil equivalent per day (boe/d), with 85% oil, from 81 gross (20.1 net) wells. The acreage has 16.7 MMboe (82% oil, 34% developed) of net proved reserves based on Carrizo's internal estimates.

According to Robert W. Baird, the company paid about $36,657/acre, before adjusting for production and reserves. The acquired production of 2,670 boe/d equates to about $93,633/flowing boe and $14.97/boe of reserves. Adjusted for production and reserves, Carrizo paid $7,300/acre, Baird said.

"We believe the purchase price is very attractive based on the market value of producing and nonproducing assets in the area and expect the acquisition to be immediately accretive on a variety of financial metrics, including cash flow and earnings per share," Johnson said.

The transaction was completed on Oct. 24, with an effective date of Oct. 1. At closing, Carrizo paid roughly $93 million, with the remaining $150 million to be paid by February.

Carrizo plans to fund the acquisition with the proceeds of a debt financing. The closing payment for the transaction was initially funded from borrowings under its revolving credit facility.