Reliance Industries To Acquire 60% Interest In Marcellus Shale Acreage In Pennsylvania: Strategically Expanding to Diversify its Global Business - Deal Analysis From GlobalData

Reliance Industries To Acquire 60% Interest In Marcellus Shale Acreage In Pennsylvania: Strategically Expanding to Diversify its Global Business - Deal Analysis From GlobalData

Summary

Reliance Industries Limited (Reliance), signed an agreement to acquire 62,200 acres in Marcellus Shale acreage in Central and Northeast Pennsylvania, from Carrizo Oil & Gas, Inc.,(Carrizo) and Avista Capital Partners, (Avista) a private equity firm, for a purchase consideration of $392m. Of the total consideration, $340m will be paid in cash and the remaining $52m of drilling carry obligations. Marcellus Shale acreage is currently held in a 50/50 joint venture between Carrizo and ACP II Marcellus LLC, (ACP) an affiliate of Avista Capital Partners.

The transaction implies deal values of $1.15 per boe of contingent resources and $6,261.98 per acre of land.

Scope

• Rationale behind Reliance acquiring assets from Carrizo and Avista
• Strategic Benefits for the companies involved
• Geography covered -US

Reasons to buy

• Develop a sound undestanding of the major M&A's, Partnerships, And Joint Ventures taking place in North American Oil & Gas industry
• Identify the most lucrative segments to leverage on the growth oppurtunities available in the US oil & gas market
• Get a detailed analysis of a deal to enable you to take better decisions