RIL completes sale of Marcellus Shale block assets in $126 mn deal

Company first announced sale in October this year; block was held as JV with Carrizo Oil and Gas.

Mukesh Ambani-led Reliance Industries Ltd (RIL) on Friday announced the closure of its deal to sell its stake in the Marcellus shale gas block, the company said in a statement.

“Reliance Marcellus II, LLC (“Reliance”) a subsidiary of Reliance Holding USA, Inc., and Reliance Industries Limited (“RIL”), announced the closing of recently announced sale of its interest in certain upstream assets, which were operated by Carrizo Oil & Gas, Inc to BKV Chelsea LLC, an affiliate of Kalnin Ventures,” the company said in its statement.

The company first announced the sale of these assets in October this year. The Marcellus block was held as a joint venture with Carrizo Oil and Gas.
 

In its release, the company added, the purchase consideration for the deal is $126 million with an effective date of April 01, 2017. “Additionally, under the definitive documents, a contingent amount of up to $11.25 million may be paid to Reliance between years 2018 to 2020 based on certain gas price thresholds being achieved,” the company added in its statement.