Reliance closes its recently announced sale of assets in Marcellus shale play of north-eastern and central Pennsylvania
Mumbai, Nov 24 (IBNS): Reliance Marcellus II, LLC, a subsidiary of Reliance Holding USA, Inc., and Reliance Industries Limited, on Friday 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.
"In a transaction announced on October 06, 2017, Reliance agreed to sell its entire working interest in these upstream assets to BKV Chelsea for purchase consideration of $126 million with an effective date of April 01, 2017," read a statement issued by the company.
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 transaction closed on Nov 21, 2017 and Reliance received the purchase consideration subject to usual and customary purchase price adjustments.