China's Lanzhou Haimo Technologies Buys US Shale Asset

China’s Lanzhou Haimo Technologies, signed a deal with Houston-based Carrizo Oil & Gas to buy into the American company’s shale oil and gas assets in Colorado, CCTV.com has reported. It marks the first investment by a private Chinese company into shale oil and gas exploration in an American oil field.

Under the agreement the Chinese company will pay $27.5 million for a 14.29 percent stake in Carrizo’s Niobrara shale oil and gas assets, the news report said. These include six thousand acres located primarily in Weld and Adams Counties in Colorado, as well as oil and gas wells and associated infrastructure.

Carrizo holds 60 thousand acres in the Niobrara basin, and produces 1,850 barrels of oil-equivalent per day.