Reliance Closes $126mn US Shale Deal

Reliance Industries closed November 21 the deal to sell its entire stake in one of its US shale assets for $126mn, it said November 24.

The sale was to BKV Chelsea, an affiliate of Denver, Colorado-based private equity firm Kalnin Ventures. The assets concerned mainly produce gas and are operated by Houston independent Carrizo Oil & Gas; they are located in the Pennsylvanian counties of Susquehanna, Wyoming and Clearfield.

Reliance first informed about its interest to sell the assets October 6. Additionally, under the definitive documents, a contingent amount of up to $11.25mn may be paid to Reliance between years 2018 to 2020 based on certain gas price thresholds being achieved.

“The transaction closed on November 21, 2017 and Reliance received the purchase consideration subject to usual and customary purchase price adjustments,” the company said.

The area operated by Carrizo is one of three upstream assets in the USA where Reliance owns interests. The latter remains invested in the Marcellus shale project via its non-operated position with Chevron in southwestern Pennsylvania and in the Eagle Ford project, via its non-operated position with Pioneer in Texas.