Reliance Marcellus, a wholly-owned subsidiary of Reliance Industries (RIL), will sell its entire stake in certain upstream assets in the Marcellus shale play of south-western Pennsylvania for $250 million.
These assets, which are currently operated by various affiliates of EQT Corporation, have been sold to Northern Oil and Gas, a Delaware corporation, for a consideration of $250 million cash and warrants that give entitlement to purchase 3.25 million common shares of Northern Oil at an exercise price of $14.00 per common share in next seven years.
A purchase and sale agreement was signed between Reliance Marcellus and Northern Oil on February 3, 2021 for this sale and the transaction is subject to customary terms and conditions of closing.
Citigroup Global Markets, Inc. acted as financial advisor to Reliance and Gibson, Dunn & Crutcher LLP served as its legal counsel.
At 09:33 hrs Reliance Industries was quoting at Rs 1,927, down Rs 3.65, or 0.19 percent on the BSE.
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News Source:- moneycontrol