RIL arm to sell shale assets for $250 mn

Reliance Marcellus, LLC (RMLLC), a wholly owned subsidiary of Reliance Industries Ltd., has signed agreements to divest all of its interest in certain upstream shale gas assets in Pennsylvania.

These assets, which are currently operated by various affiliates of EQT Corporation, have been agreed to be sold to Delware-based Northern Oil and Gas, Inc., (NOG) for $250 million cash and warrants.

The agreement gives entitlement to purchase 3.25 million common shares of NOG at an exercise price of $14 per common share in the next seven years.

“A purchase and sale agreement has been signed between RMLLC and NOG on February 3 for this sale and the transaction is subject to customary terms and conditions of closing,” RIL said in a statement.

Source: Read Full Article