Oil India talking to Carrizo for shale asset

Vol 16, PW 3 (23 Aug 12) News in Brief

Houston-based Carrizo Oil & Gas is offering state-owned junior explorer Oil India a stake at a shale gas asset in Denver, Colorado.

This month Oil India director finance TK Ananth Kumar led a team to Houston on an eight-day trip to meet Carrizo executives. Kumar was scheduled to meet Carrizo chairman Steven A.

Webster and CEO Chip Johnson on August 17. “Our team left for Houston on August 16,” confirms a company source.

“We hope to strike a deal at these high-level meetings.” State-owned GAIL acquired 20% at Carrizo’s Eagle Ford shale acreage in south Texas last September, its first foray into shale gas.

GAIL paid Carrizo $63.7m (Rs312cr) upfront in cash and is expected to invest up to $300m in total over the next five years at the field. Eagle Ford covers 20,200 acres and is producing 2350 b/d of oil.

Mukesh Ambani-controlled Reliance likewise holds 45% at Eagle Ford and 60% at a Marcellus shale gasfield through a joint venture with Carrizo.

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