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    Oil India shares rise over 5% a day after company exits US shale venture

    Oil India shares rise over 5% a day after company exits US shale venture

    Oil India shares rise over 5% a day after company exits US shale venture
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    By CNBCTV18.com  IST (Published)

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    Oil India share price: According to a regulatory filing by Oil India (USA) Inc (wholly owned subsidiary of OIL), the company has divested its entire stake in Niobrara shale asset, USA.

    Shares of state-owned Oil India Ltd (OIL) rose over 5 percent on Monday, a day after the company exited from a US shale oil venture, selling its 20 percent stake to its venture partner for $25 million — the second exit of an Indian firm from the US shale business in two months.
    On the Bombay Stock Exchange (BSE), Oil India shares advanced as much as 5.23 percent to an intraday high of Rs 230 apiece. On the National Stock Exchange (NSE), the company's shares rose to Rs 229.85 apiece intraday, up 5.05 percent.
    At 10:23 am, Oil India shares traded 4.03 percent higher at Rs 227.35 apiece on the BSE. The benchmark Sensex index was 0.10 percent up at that time.
    According to a regulatory filing by Oil India (USA) Inc (wholly owned subsidiary of OIL), the company has divested its entire stake in Niobrara shale asset, USA.
    OIL and Indian Oil Corporation (IOC) had together in October 2012 bought a 30 percent stake in Houston-based Carrizo Oil & Gas's Niobrara shale asset in Colorado for $82.5 million. While OIL had acquired 20 percent, IOC bought 10 percent in Carrizo's Niobrara basin acreage assets through their respective subsidiaries. The total investment of $82.5 million included an upfront cash payment of $41.25 million and a carry amount of $41.25 million, linked to Carrizo's future drilling and development cost.
    The stake was sold to Verdad Resources LLC, which is the operator of the asset. Originally, OIL acquired the 20 percent interest in the liquid rich shale asset in the DenverJulesburg Basin from Carrizo Oil & Gas, Inc. Carrizo sold its entire stake in the Niobrara asset to Verdad Resources LLC in January 2018, according to news agency PTI.
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