China's Haimo Oil & Gas Buys Stake in US Shale Acreage

Lanzhou Haimo Technologies Co said on Friday that its subsidiary Haimo Oil & Gas LLC will buy a 14.29-percent stake in Houston-based Carrizo Oil & Gas's Niobrara shale oil and gas assets in Colorado for $27.5 million.

As per the agreement, the Chinese company will acquire around 6,000 acres located primarily in Weld and Adams Counties in Colorado as well as associated infrastructure, including oil and gas wells, Xinhua reported citing a statement filed to the Shanghai Stock Exchange.

Carrizo, which holds approximately 60,000 acres in the Niobrara basin, currently produces 1,850 barrels of oil-equivalent per day.

China is aiming to produce 6.5 billion cubic meters of shale gas by 2015. An estimated 400 to 600 billion yuan will be spent to drill 20,000 shale gas wells by 2020, according to the National Development and Reform Commission, the country's top economic planner.