Carrizo Oil & Gas has entered into an agreement with Haimo Oil & Gas to form a new joint venture (JV) in the Niobrara play, located in North Dakota, US.
Under the terms of the agreement Haimo Oil which is a subsidiary of Lanzhou Haimo Technologies, will purchase an undivided interest in approximately 6,000 net acres located primarily in Weld and Adams Counties, Colorado.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
It will also acquire associated infrastructure and production of approximately 185 Boe/day for an all-cash payment of $27.5m.
The sale will be subject to customary closing conditions (including Chinese government approvals) and purchase price adjustments.
The company said the sale will have an effective date of 1 October 2012, which is the same date as the company’s separate Niobrara joint venture agreement with OIL India (USA) Inc. and IOCL (USA) Inc.
OIL India (USA) Inc. and IOCL (USA) Inc are subsidiaries of OIL India and Indian Oil Corporation respectively.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataUpon closing of the transaction, the joint venture interest ownership participations in Carrizo’s Niobrara development activities will stand collectively at 60% Carrizo, 30% OIL/IOCL, and 10% Haimo.
The transaction is expected to be closed in the fourth quarter of 2012.
US-based Carrizo Oil & Gas is engaged in the exploration, development, and production of oil and gas primarily in the US and UK.
