Reliance arm sells assets in Marcellus shale play

Reliance Industries said on Thursday its subsidiary Reliance Marcellus LLC has signed agreements to divest all of its interest in certain upstream assets in the Marcellus shale play of southwestern Pennsylva.

These assets, which are currently operated by various affiliates of EQT Corporation, have been agreed to be sold to Delaware-based Northern Oil and Gas Inc for 250 million dollars cash and warrants that give entitlement to purchase 3.25 million common shares of NOG at an exercise price of 14 dollars per common share in next seven years.

A purchase and sale agreement was signed between RMLLC and NOG on February 3 for this sale and the transaction is subject to customary terms and conditions of closing.

Citigroup Global Markets Inc acted as financial advisor to Reliance and Gibson, Dunn & Crutcher LLP served as its legal counsel.

Reliance Marcellus LLC is a wholly-owned subsidiary of Reliance Industries Ltd, India's largest private sector company with a consolidated turnover of Rs 6.59 lakh crore, cash profit of Rs 71,446 crore and net profit of Rs 39,880 crore in FY20.

The shale play encompasses 104,000 square miles and stretches across Pennsylva and West Virginia, and into eastern Ohio and western New York.

( With inputs from ANI )

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