Though Carrizo is active in north Texas - it is developing shale-gas wells on the campus of the University of Texas-Arlington - it has drilled only one well in Pennsylvania, according to state records.
But Carrizo's drilling activity in Susquehanna and Wyoming Counties will accelerate in the next two years because the Reliance investment includes $52 million to cover 75 percent of the well-development costs. Carrizo chief executive S.P. "Chip" Johnson IV told analysts on Thursday that Reliance has a "big appetite to drill shale wells."
Reliance estimates the potential Pennsylvania resource at 3.4 trillion cubic feet of gas and said it expected to drill 1,000 wells in the area over the next decade.
The company already has invested $3 billion this year in the purchase of shale-gas assets in Pennsylvania and Texas from Atlas Energy Inc. and Pioneer Natural Resources Co.
ExxonMobil, Royal Dutch Shell, and investors from France, Norway, and Japan also have rushed into the Marcellus Shale, which lies under much of Pennsylvania and parts of four other states.
Aided by a controversial drilling technique, exploration companies have dramatically increased production in unconventional geologic formations such as shale.
Reliance appears to be picking up expertise in unconventional gas development ahead of India's plans to offer shale-gas areas for exploration next year.
Contact staff writer Andrew Maykuth at 215-854-2947 or amaykuth@phillynews.com.
