Oil India Limited (OIL) and Indian Oil Corporation Limited (IOCL) have jointly acquired a 30% stake in Nasdaq-listed Carrizo Oil & Gas Inc’s (Carrizo) liquid rich shale assets in the Denver–Julesburg Basin in Colorado, USA at a total investment of $82.5 million. The deal, which represents OIL and IOCL’s first shale acquisition in the US, includes an upfront cash payment of $41.25 million and the assumption of $41.25 million of Carrizo’s future drilling and development costs. BMO Capital Markets acted as exclusive financial advisor to OIL on the transaction. Thompson & Knight LLP acted as legal counsel, while Ernst & Young and Halliburton acted as tax and accounting and technical due diligence consultants, respectively.
OIL and IOCL, through their wholly-owned US subsidiaries, will receive 30% of Houston, Texas-based Carrizo’s interest in approximately 60,000 net acres where the partners will target development of the Niobrara shale. As part of the transaction, OIL and IOCL will also receive a 30% interest in Carrizo’s existing production, of approximately 1850 BOE/ day from 24 gross wells.
For the IOCL Press Release, Click Here
For the Carrizo Press Release, Click Here
