Mumbai: Reliance Marcellus, LLC (RMLLC), a wholly owned subsidiary of Reliance Industries Limited (RIL), has signed agreements to divest all of its interest in certain upstream assets in the Marcellus shale play of south-western Pennsylvania.
These assets, which are currently operated by various affiliates of EQT Corporation (EQT), have been agreed to be sold to Northern Oil and Gas Inc (NOG), a Delaware corporation, for $250 million and warrants that give entitlement to purchase 3.25 million common shares of NOG at an exercise price of $14 per common share in next seven years.
A Purchase and Sale Agreement was signed between RMLLC and NOG on February 3 for the sale. Citigroup Global Markets Inc acted as financial advisor to Reliance and Gibson, Dunn & Crutcher LLP served as its legal counsel, according to a press release.
RIL is India’s largest private sector company with a consolidated turnover of ₹659,205 crore and net profit of ₹39,880 crore for the year ended March 31, 2020.