Reliance Industries Ltd has entered into a shale gas JV with US-based Carrizo Oil and Gas Inc for a 60% stake in Marcellus Shale acreage in Central and Northeast Pennsylvania for $392 Mn.

The consideration will comprise of $340 Mn of cash and $52 Mn of drilling carry obligations. The drilling carry obligations will provide for 75% of Carrizo's share of development costs over an anticipated 2 year development program.

The JV will have about 104,400 net acres of undeveloped leasehold in the core area of which Reliance's 60% interest will represent approximately 62,600 net acres.

Jefferies & Company, Inc. acted as lead financial advisor and Vinson & Elkins LLP was the legal counsel to Reliance. BNP Paribas and Credit Agricole Corporate and Investment Bank provided strategic advice to RIL on this deal.

Transaction Reference: ET

Carrizo is a Houston-based energy company engaged in the exploration, development, exploitation and production of oil and natural gas primarily in the Barnett Shale in North Texas, the Marcellus Shale in Appalachia, and in proven onshore trends along the Texas and Louisiana Gulf Coast regions.

The acreage is at present held in a 50:50 JV between Carrizo and ACP II Marcellus LLC, an affiliate of Avista Capital Partners. Reliance will acquire 100% of Avista's interest and 20% of Carrizo's interests.

This acreage is expected to support the drilling of approximately 1,000 wells over the next 10 years.

Carrizo will serve as the development operator while Reliance has the option to act as a development operator in certain regions in the coming years.

Reliance Industries had bought a 40% stake in Atlas Energy Inc's Marcellus Shale acreage for $1.7 Bn in April.

In June, it had agreed to buy 45% stake in Pioneer Natural Resources Co's - Eagle Ford shale natural gas asset in Texas for about $1.36 Bn.

Previous Article

Canaan Partners To Invest Rs 40 Cr In Naaptol.com

Next Article

Sheth Creators Raises R80Cr From IIFL PE

KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
05/08/10	Marcellus Shale acreage - Reliance Industries	M&A	Reliance Industries Limited	392.00

 

  Recent Transactions In The Sector

Date	Type	Buyer	Target	Size ($mn)	State
18/04/12	M&A	GDF Suez	LNG Project	-	Completed
12/04/12	M&A	Trafigura	Nagarjuna Oil Corporation Limited	130.00	Completed
28/02/12	M&A	GAIL India Limited	Cove Energy Plc	-	Planned
03/02/12	Private Equity	Goldman Sachs Capital Partners	Aban Offshore Limited (Aban Loyd Chiles Offshore Limited)	4.59	Completed

 

  Profiles

Company
Name	Promoters	Office	Competitor	Website
Reliance Industries Limited	Mukesh D Ambani	Reliance Industries Limited Makers Chambers - IV, Nariman Point, Mumbai 400 021. India.	Indian Oil Corporation Limited Hindustan Petroleum Corp. Limited Cairn India Limited Essar Oil Limited	www.ril.com

  Advisor

Jefferies India Private Limited

All Comments

Readers' Recommendations

1	October 26, 2010 06:55 AM	audemars piguet limited replica watches have been insisting on perfect quality,gucci digital fake U-boat watches addition, paul Picot watches replica Royal Oak Top is extended table factory's first stainless steel as a material for the manufacture of the table, then unheard of just 300 francs, movado watches fake the price more alarmed at the table, fake Graham watches open the advanced table in the campaign table.The alinghi audemars piguet fake Invicta is so respected in England in the fifteenth century Puritan Revolution, aero watches dodge King Charles II of England King Charles II once enemy Chase, fake Zenith who in an oak HID, franck Muller fake life, elini watches replica Charles II's life Protector for Royal Oak to save icon. fake Jacob and Co watches Neither, Hamilton watches fake the Oak Room in the midst of the most respected enjoyed special status.bvlgari chronograph replica Milgauss have consistently featured courageous divineMr. Sinn watches replica Charles Zunda (Charles G - Posted by bags Recommended by 0 Readers
2	September 25, 2010 08:14 PM	Respected sir, i m ready to work in any field in any where across the country - Posted by sharad kumar Recommended by 0 Readers