Carrizo Oil & Gas Inc. and Haimo Oil & Gas LLC will form new joint venture in the Niobrara play in the Denver basin in northeastern Colorado.
Haimo Oil & Gas, a subsidiary of Lanzhou Haimo Technologies Co. Ltd., will acquire an undivided interest in 6,000 net acres in Weld and Adams counties plus associated infrastructure and 185 b/d of oil equivalent production for $27.5 million cash. The transaction is subject to closing conditions, including Chinese government approvals, and purchase price adjustments.
The sale will be effective as of Oct. 1, 2012, the same effective date as in Carrizo’s separate Niobrara joint venture agreement with OIL India (USA) Inc. and IOCL (USA) Inc, subsidiaries of OIL India Ltd. and Indian Oil Corp. Ltd., respectively.
Following the closing of this transaction late in the fourth quarter of 2012, the joint venture interest ownership participations in Carrizo’s Niobrara development activities will stand collectively at 60% Carrizo, 30% OIL/IOCL, and 10% Haimo.