Reliance Industries' Subsidiary To Sell Marcellus Shale Assets
Reliance Industries (RIL) said on Thursday that its unit will sell its interest in upstream assets in the Marcellus shale play of south-western Pennsylvania in the United States to Northern Oil and Gas Inc for $250 million. "The assets, currently operated by various affiliates of EQT Corp, will be sold for the cash consideration and warrants, that will allow for the purchase of 3.25 million common shares of NOG at an exercise price of $14 per common share in the next seven years," Reliance Industries said in a regulatory filing to the stock exchanges on Thursday morning.
A Purchase and Sale Agreement was signed between Reliance Marcellus and Northern Oil and Gas on February 3, 2021. The transaction is subject to customary terms and conditions of closing.
Reliance Industries had sold a shale oil and gas block in the Marcellus shale in northeastern and central Pennsylvania for $126 million in the year 2017.
At 10:00 am, the shares of Reliance Industries were trading at Rs 1,926, lower by 0.22 per cent, on the BSE.