A wholly owned subsidiary of GAIL (India) has acquired 20% of its Carrizo Oil & Gas interests in 20,200 net mineral acres of the Eagle Ford Shale area in Texas, US, for $95m.

The asset sale is subject to customary post-closing adjustments and indemnities.

Post sale, GAIL will acquire 4,040 net acres located primarily in La Salle County and a 20% interest in eight horizontal wells.

The wells produce approximately 1,700 net barrels of oil per day (340 barrels per day net to GAIL) and 3.8 million cubic feet of rich gas per day (760,000ft2 net to GAIL).

Carrizo will continue as operator of these properties, where a rig is in the process of drilling a four-well pad, and production will begin by the end of this year.

In addition, Carrizo has executed purchase agreements for additional Eagle Ford acreage, which will not be included in the joint venture with GAIL.

Carrizo will now own approximately 41,000 net acres in the Eagle Ford Shale play.