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RIL sells assets in ‘Marcellus Shale Play’ in Pennsylvania

Mumbai, Oct 6 (IANS) Energy major Reliance Industries on Friday said it has entered into an agreement for the sale of its assets in the "Marcellus Shale Play" of northern and central Pennsylvania.

According to a BSE filing, Reliance Marcellus II, LLC, a subsidiary of Reliance Holding USA, Inc., and Reliance Industries has signed "agreements to divest all of its interests in certain upstream assets in north-eastern and central Pennsylvania".

The filing said that assets, which are currently operated by Carrizo Oil and Gas, were sold to BKV Chelsea, an affiliate of Kalnin Ventures for a 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 company said in a regulatory filing to the BSE.

"The assets produce mainly gas and are located in Susquehanna, Wyoming and Clearfield Counties of Pennsylvania."

The company said the sale of 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.

(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)

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Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.

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