Oil & Gas Reliance Closes Marcellus Shale Asset Sale
The company has sold its assets in the Marcellus Shale Play of North-Eastern and Central Pennsylvania to BKV Chelsea for 126 million dollars. Based on certain gas price thresholds, Reliance may also get paid a contingent amount of up to 11.25 million dollars from 2018 to 2020.
Mumbai/India – Reliance Marcellus II (Reliance), a subsidiary of Reliance Holding USA and Reliance Industries announced the closing of the recently announced sale of its interest in certain upstream assets; which were operated by Carrizo Oil & Gas to BKV Chelsea, 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 a purchase consideration of 126 million dollars with an effective date of April 01, 2017. Additionally, under the definitive documents, a contingent amount of up to 11.25 million dollars may be paid to Reliance between the 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.