Oil India sells entire 20% stake in US shale asset for for $25-M, exits JV

Oil India (USA) Inc, a wholly owned subsidiary of OIL, has divested its entire 20% stake in Niobrara shale asset, USA for USD 25 million. The stake was sold to Verdad Resources LLC, which is the operator of the asset. This is the second exit of an Indian firm from the US shale business in two months. OIL and Indian Oil Corporation (IOC) had together in October 2012 bought a 30% stake in Houston-based Carrizo Oil & Gas's Niobrara shale asset in Colorado for USD 82.5 million. While OIL had acquired 20%, IOC bought 10% in Carrizo's Niobrara basin acreage assets through their respective subsidiaries. The total investment included an upfront cash payment of USD 41.25 million and a carry amount of USD 41.25 million, linked to Carrizo's future drilling and development cost.