Reliance Industries Limited (Reliance), signed an agreement to acquire 62,200 acres in Marcellus Shale acreage in Central and Northeast Pennsylvania, from Carrizo Oil & Gas, Inc.,(Carrizo) and Avista Capital Partners, (Avista) a private equity firm, for a purchase consideration of $392m. Of the total consideration, $340m will be paid in cash and the remaining $52m of drilling carry obligations. Marcellus Shale acreage is currently held in a 50/50 joint venture between Carrizo and ACP II Marcellus LLC, (ACP) an affiliate of Avista Capital Partners.
The transaction implies deal values of $1.15 per boe of contingent resources and $6,261.98 per acre of land.
Scope
- Rationale behind Reliance acquiring assets from Carrizo and Avista
- Strategic Benefits for the companies involved
- Geography covered -US
Reasons to buy
- Develop a sound undestanding of the major M&A's, Partnerships, And Joint Ventures taking place in North American Oil & Gas industry
- Identify the most lucrative segments to leverage on the growth oppurtunities available in the US oil & gas market
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