Carrizo Oil and Gas (CRZO) reported that the company has entered into an agreement with Reliance Industries Limited to jointly develop acreage in the Marcellus Shale.
Reliance Industries Limited will acquire a 20% interest in 52,200 net acres in Pennsylvania from Carrizo Oil and Gas in exchange for $65 million.
Carrizo Oil and Gas said that Reliance Industries Limited would pay $13 million up front, and then carry $52 million of the future costs of developing the acreage. The deal will close in September 2010.
Reliance Industries Limited also acquired 52,200 net acres in the Marcellus Shale from Avista Capital Partners for $326.6 million.
Carrizo Oil and Gas said that the new joint venture would total 104,400 gross acres in the Marcellus Shale, with the company owning a 40% interest, and Reliance Industries Limited owning 60%.