Reliance’s arm to divest US shale gas assets

India Infoline News Service | Mumbai | October 07, 2017 09:48 IST

Reliance Industries Limited (RIL) announced that Reliance Marcellus II, LLC, a subsidiary of Reliance Holding USA, Inc. (Reliance), and RIL has signed an agreements to divest all of its interest in certain upstream assets in north-eastern and central Pennsylvania.

Reliance Industries Limited (RIL) announced that Reliance Marcellus II, LLC, a subsidiary of Reliance Holding USA, Inc. (Reliance), and RIL has signed an agreements to divest all of its interest in certain upstream assets in north-eastern and central Pennsylvania.
 
The assets, which are currently operated by Carrizo Oil & Gas, Inc., were sold to BKV Chelsea, LLC, an affiliate of Kalnin Ventures LLC, for consideration of $126 million, subject to customary closing terms and conditions. 
 
Additionally, Reliance could receive contingent payments of up to $11.25 million in aggregate based on natural gas prices exceeding certain thresholds over the next three years.
 
The sale of the assets will be consummated in accordance with the terms of a purchase and sale agreement, dated October 5, 2017, by and between Reliance and the buyer. The transaction is anticipated to close by the end of the third quarter of FY2018, with an April 1, 2017 effective date.
 
The stock of RIL ended up by 1.53% at Rs 836 per share on BSE on Friday. 

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Disclaimer: The contents herein is specifically prepared by ‘Dalal Street Investment Journal’, and is for your information & personal consumption only. India Infoline Limited or Dalal Street Investment Journal do not guarantee the accuracy, correctness, completeness or reliability of information contained herein and shall not be held responsible.

 

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