Carrizo Oil & Gas Announces Closing of Marcellus Shale Joint Venture With a Subsidiary of Reliance
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Started by: abarrelfullabarrelfull
Date: 14 Sep 2010 08:38
Number of posts: 1
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Summary:
Carrizo Oil & Gas, Inc. (NASDAQ: CRZO) today announced that the company closed its previously announced joint venture transaction in the Marcellus Shale with a subsidiary of Reliance Industries Limited ("Reliance"). In connection with the joint venture, Reliance acquired a 20% interest in approximately 52,200 net Carrizo acres in Pennsylvania considered highly prospective for Marcellus Shale natural gas at a purchase price of $65 million. Reliance paid $11.4 million in cash to Carrizo at closing with $1.7 million more expected later this year. In addition, Reliance will pay an expected $52 million of Carrizo's share of future drilling, completion, and seismic costs ("development carry"). The joint venture agreement is effective immediately. Simultaneous with the closing of this transaction, an affiliate of Carrizo's already existing joint venture partner, Avista Capital Partners ("Avista"), closed on the sale its entire interest in the same properties to Reliance for approximat
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