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

Introduction

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

Highlights

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

Report Highlights

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TABLE OF CONTENTS

1 Table of Contents 1
1.1 List of Tables 2
1.2 List of Figures 2
2 GlobalData Deal Analysis 3
2.1 Summary 3
2.2 Deal Overview 3
3 Reliance Industries To Acquire 60% Interest In Marcellus Shale Acerage In Pennsylvania 3
3.1 Deal Overview 3
3.2 Deal in Brief 3
3.3 Reliance Intends to Expand its North American Shale Assets By Acquiring Acreage in Marcellus Shale 3
3.4 Marcellus Shale Becoming Increasingly Attractive to Investors 5
3.5 Carrizo’s Overview 7
3.6 Avista is Divesting its assets to focus on central and northeast Pennsylvania. 8
3.7 Deal Financials and Valuations 8
3.7.1 Companies Involved 8
3.7.2 Deal Financials 8
3.7.3 Deal Rationale 8
3.7.4 Advisor Information 9
3.7.5 Production and Reserves Information 9
3.7.6 Detailed Target Information 9
3.7.7 Transaction Implied Values 10
3.7.8 Commodity Prices Information 10
3.7.9 Carrizo Oil & Gas, Inc. Detailed Vendor Information 10
3.7.10 Legacy Oil + Gas Inc. Detailed Vendor Information 11
3.7.11 Detailed Acquirer Information 11
4 Appendix 12
4.1 About Energy eTrack 12
4.2 Methodology 12
4.2.1 Coverage 12
4.2.2 Secondary Research 13
4.2.3 Primary Research 13
4.2.4 Expert Panel Validation 13
4.3 Contact Us 14
4.4 Disclaimer 14
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LIST OF TABLES

1.1 List of Tables
Table 1: Reliance, Asset Acquisition Details, 2008-2010 5
Table 2: Companies Involved 8
Table 3: Financials of the Deal 8
Table 4: Advisor Information 9
Table 5: Target’s Production and Reserves Information 9
Table 6: Target Information 9
Table 7: Company Valuation Multiples 10
Table 8: Commodity Prices in $, Last Close 10
Table 9: Carrizo Oil & Gas, Inc.Vendor Information 10
Table 10: Legacy Oil + Gas Inc Vendor Information 11
Table 11: Acquirer Information 11
LIST OF FIGURES

1.2 List of Figures
Figure 1: Reliance, International, Operations Map, 2010 4
Figure 2: Marcellus Shale, Map, 2010 6
Figure 3: Carrizo, North America, Operations Map, 2010 7
Figure 4: GlobalData Methodology 12
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