Reliance Sells Down Eagle Ford

After closing the deal last November to sell its entire stake in the Carrizo Oil & Gas-operated shale assets in the Pennsylvanian counties of Susquehanna, Wyoming and Clearfield, Reliance Industries has now decided to sell its stake in Texan Eagle Ford shale assets, it said March 27.

Reliance Eagleford Upstream Holding, a subsidiary of both Reliance Holding USA, and Reliance Industries, has inked a purchase and sale agreement with Sundance Energy to divest a certain portion of its interest in some acreage, producing wells and related assets in the western portion of its Eagle Ford shale position for about $100mn. The deal is subject to certain customary adjustments and closing terms and conditions. This transaction is in conjunction with sales made by Pioneer Natural Resources USA and Newpek, the other working interest owners in the joint development with Reliance, the company said.

The assets being sold are in Atascosa, La Salle, Live Oak and McMullen Counties, Texas and were not part of the near-term development plans for joint development, Reliance said. The company continues to retain its interest in the remaining Eagle Ford assets that are core to its development priorities. The sale is expected to close in Q1 2019 and is subject to customary closing conditions.

Reliance initially had interests in three shale assets in the US, which the company bought during 2010 and 2013. Reliance remains fully invested in the Marcellus shale project with Chevron in southwest Pennsylvania.