RIL sells stake in Marcellus Shale to BKV Chelsea for $126 million

Reliance Industries today said it has completed sale of its interest in one of the three shale gas assets in the US to BKV Chelsea for USD 126 million.

Reliance Marcellus II, LLC, a subsidiary of Reliance Holding USA and RIL, closed the sale of its stake in the Marcellus shale gas asset operated by Carrizo Oil and Gas, the company said in a statement.

The transaction, which was announced on October 6, will be effective April 1, 2017.

RIL held stakes in three US shale gas ventures - 45 per cent with Pioneer Natural Resources in the Eagle Ford shale play; 40 per cent with Chevron and 60 per cent with Carrizo Oil & Gas in the Marcellus Shale play.

The assets, which are operated by Carrizo Oil & Gas, Inc, were sold to BKV Chelsea, LLC, an affiliate of Kalnin Ventures LLC, for USD 126 million.

"Additionally, under the definitive documents, a contingent amount of up to USD 11.25 million may be paid to Reliance between 2018 to 2020 based on certain gas price thresholds being achieved," it said.

The deal closed on November 24 and the company received the purchase consideration subject to usual and customary purchase price adjustments, the statement added.

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