Reliance Industries (RIL) on Thursday announced that its wholly-owned subsidiary Reliance Marcellus, LLC (“RMLLC”) signed an agreements to divest all of its interest in certain upstream assets in the Marcellus shale play of south-western Pennsylvania.
These upstream assets are currently operated various affiliates of EQT Corporation (“EQT”) and will be sold to Northern Oil and Gas, Inc (“NOG”), a Delaware corporation.
The transaction will be carried for a consideration of $250 million cash and warrants that give entitlement to purchase 3.25 million common shares of NOG at an exercise price of $14.00 per common share in the next seven years.
Notably, Citigroup Global Markets, Inc. acted as financial advisor to Reliance and Gibson, Dunn & Crutcher LLP served as its legal counsel.
The agreement was signed between RMLLC and NOG on February 3, 2021, for this sale and the transaction is subject to customary terms and conditions of closing.
At around 10.24 pm, RIL was trading at Rs1929.70 per piece flat compared to the previous closing. On Sensex, the stock has touched an intraday high and low of Rs1939.70 per piece and Rs1912.70 per piece respectively.