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October 04, 2012

BMO advises OIL in joint stake acquisition (with IOC) in Carrizo's US shale gas assets

Oil India Limited (OIL) and Indian Oil Corporation Limited (IOCL) have jointly acquired a 30% stake in Nasdaq-listed Carrizo Oil & Gas Inc’s (Carrizo) liquid rich shale assets in the Denver–Julesburg Basin in Colorado, USA at a total investment of $82.5 million. The deal, which represents OIL and IOCL’s first shale acquisition in the US, includes an upfront cash payment of $41.25 million and the assumption of $41.25 million of Carrizo’s future drilling and development costs. BMO Capital Markets acted as exclusive financial advisor to OIL on the transaction. Thompson & Knight LLP acted as legal counsel, while Ernst & Young and Halliburton acted as tax and accounting and technical due diligence consultants, respectively.

OIL and IOCL, through their wholly-owned US subsidiaries, will receive 30% of Houston, Texas-based Carrizo’s interest in approximately 60,000 net acres where the partners will target development of the Niobrara shale. As part of the transaction, OIL and IOCL will also receive a 30% interest in Carrizo's existing production, of approximately 1850 BOE/ day from 24 gross wells.

For the IOCL Press Release, Click Here

For the Carrizo Press Release, Click Here