Carrizo Oil & Gas Inc. (NASDAQ: CRZO) inched toward the halfway mark of its $300 million divestiture goal on Oct. 5 with an agreement to sell Marcellus Shale assets to help pay for an August Delaware Basin transaction.
The buyer, Kalnin Ventures LLC, said it purchased Carrizo’s assets, as well as those of a Reliance Industries Ltd. subsidiary, in separate deals totaling $210 million. With the deals, Kalnin is poised to become a major northeast gas producer.
Carrizo operates all of the assets and has been in a joint venture with Reliance Marcellus II LLC for seven years, according to Reliance Industries—the largest private-sector company in India.
Houston’s Carrizo said its assets were sold for $84 million cash and with additional contingency payments of $7.5 million based on price thresholds for natural gas during the next three years.