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.
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