Carrizo Oil & Gas Inc. has entered a joint venture agreement with subsidiaries of Oil India Ltd. and Indian Oil Corp. Ltd.

Pursuant to the agreement, Oil and Indian Oil Corp. have together acquired an undivided 30% non-operated interest in substantially all of Carrizo's assets and operations prospective for Niobrara formation oil development located primarily in Weld and Adams counties in Colorado for approximately US $82.5 million, a news release said. Included in the transaction is the sale of approximately 18,100 net mineral acres and approximately 555 boe/d (75% oil) of production from 24 gross currently producing Carrizo operated wells.

Under the terms of the joint venture, Carrizo is receiving $41.25 million in cash and an additional $41.25 million in the form of a drilling carry that will be applied to fund a portion of Carrizo's share of future Niobrara development costs. The carry is anticipated to be fully utilized by early 2014. The transaction has an effective date of October 1, 2012 and is subject to customary post-closing adjustments, consents and indemnities.