RIL sells its Marcellus shale assets in US to NOG Corp for $250 million
08 February 2021
Reliance Industries Ltd (RIL) on Thursday announced the sale of its US shale gas assets in southwestern Pennsylvania to Northern Oil and Gas Inc (NOG), for $250 million in cash and stock.
The asset sale agreement signed with Delaware-based NOG entitles RIL to use the warrants for purchase of 3.25 million common shares of NOG at an exercise price of $14 per common share in the next seven years.
Reliance Marcellus LLC, a wholly owned subsidiary of Reliance Industries Limited (RIL), announced the signing of agreements to divest all of its interest in certain upstream assets in the Marcellus shale play of southwestern Pennsylvania.
These assets are currently operated by various affiliates of EQT Corporation and the transaction is subject to customary terms and conditions of closing, RIL stated in a release.
Citigroup Global Markets, Inc acted as financial advisor to Reliance and Gibson, Dunn & Crutcher LLP served as its legal counsel.
Reliance had, in 2017, sold a shale oil and gas block in the Marcellus in northeastern and central Pennsylvania for $126 million.