Reliance joins Carrizo in Marcellus shale venture

By OGJ editors
HOUSTON, Aug. 5
– Reliance Industries Ltd., Mumbai, has taken another step into US unconventional resource plays by entering a venture that envisions the drilling of 1,000 wells in the Marcellus shale fairway.

A subsidary, Reliance Marcellus II LLC, entered a joint venture with Carrizo Oil & Gas Inc., Houston, through which it will acquire a 60% interest in Marcellus shale acreage now held in a 50-50 joint venture of Carrizo and ACP II Marcellus LLC, an affiliate of Avista Capital Partners.

Paying a total of $392 million, Reliance will acquire 100% of Avista’s interest and 20% of Carrizo’s interest in the joint venture. New interests thus will be Reliance 60% and Carrizo 40%.

Of the total consideration, $340 million will be cash, and $52 million will be drilling carry obligations. The latter obligations will provide for 75% of Carrizo’s share of development costs over an expected 2-year development program.

The joint venture holds 104,400 net acres of undeveloped leases in the core area of the Marcellus shale in central and northeastern Pennsylvania.

Reliance said the acreage will support the drilling of about 1,000 wells during the next 10 years. It estimates resource potential net to the joint venture at 3.4 tcf of gas equivalent.

Carrizo will be development operator for the joint venture. Reliance has the option to become development operator in certain regions.

Carrizo and Avista remain in a joint venture holding Marcellus shale acreage in New York and West Virginia.

Earlier, Reliance entered a joint venture with Pioneer Natural Resources Co. and Newpek LLC in a $1.35 billion deal through which it gained a large position in the Eagle Ford shale play of South Texas (OGJ, July 5, 2010, p. 43).

Related Articles

Carrizo adds 6,820 net acres in Eagle Ford acquisition

10/27/2014 Carrizo Oil & Gas Inc., Houston, has completed its acquisition of 6,820 net acres primarily in LaSalle, Atascosa, and McMullen counties, Tex., ...

People

10/17/2014 David Lawler has accepted the role of chief executive officer of BP PLC.'s Lower 48 Onshore business and resigned his role as executive vicepreside...

Southwestern Energy's Fayetteville output nears 500 MMcfd

07/31/2008 Southwestern Energy said its gross operated production from the Fayetteville shale play area in north-central Arkansas was 500 MMcfd of gas, includ...

Oilexco studies Huntingdon oil prospect development

02/12/2008 Oilexco North Sea and its partners are studying fast-track development options for an oil prospect in the UK Central North Sea after finding a 452-...

Huntington Forties delineation completed

12/27/2007 Oilexco Inc., Calgary, completed appraisal of the Paleocene Forties reservoir at its mid-2007 Huntington two-zone oil and gas discovery on Block 22...

Floyd shale wildcat due tests in Mississippi

08/15/2007 Carrizo Oil & Gas Inc., Houston, plans to frac its first horizontal Floyd shale well in Mississippi in September.

Oilexco to test Huntingdon prospect in UK North Sea

06/06/2007 Oilexco North Sea Ltd. and its partners will carry out a drillstem test on the Upper Jurassic Fulmar sand in the Huntington prospect in the UK Cent...

Carrizo accumulates land in US shale plays

07/24/2006 Carrizo Oil & Gas Inc., a Houston independent with 82,000 net acres in the Fort Worth basin Barnett shale play, said it has accumulated more than 2...

Carrizo Oil & Gas appoints exploration vice-president

03/10/2005 Carrizo Oil & Gas Inc. has named Gregory E. Evans as vice-president, exploration.

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected