This Article is From Oct 04, 2012

Oil India, IOC buy stake in US shale assets for $82.5 mn

State-run firms Oil India Ltd and Indian Oil Corp have jointly bought a 30 per cent stake in Houston-based Carrizo Oil & Gas's Niobrara shale asset in Colorado for $82.5 million (Rs 427.93 crore), the companies said in a statement.

Oil India will acquire 20 per cent and Indian Oil Corp will get 10 per cent in Carrizo's Niobrara basin acreage assets through their respective subsidiaries.

"The total investment for the two companies would be around $82.5 mln, including upfront cash payment of $41.25 million and a carry amount of $41.25 million, linked to Carrizo's future drilling and development cost," the statement said.

Carrizo has 61,500 gross acres in the Niobrara basin, of which the Oil India-IOC consortium will have 18,450 acres, spread over three counties in Texas.

Copyright @ Thomson Reuters 2012

(I USD = 51.87 INR)