Carrizo (NASDAQ:CRZO) Closes Marcellus Shale Deal with Reliance Industries

The joint venture deal between Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) and a subsidiary of Reliance Industries Limited has been closed.

Reliance acquired a 20 percent stake in close to 52,200 net Carrizo acres in Pennsylvania Marcellus Shale.

The overall price was $65 million, with Carrizo paying $11.4 million at close, with an additional $1.7 million to be paid later in 2010. The remaining $52 million will be paid as a share of "future drilling,
completion, and seismic costs."

Carrizo affiliate, Avista Capital Partners, simultaneously closed on the same properties with Reliance for about $327 million. Carrizo will receive $44 million in cash from their affiliate from the sale of the 52,500 acres.

The agreement between Carrizo and Reliant is effective immediately.