Reliance Industries on Thursday announced that it will 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, will be sold to Northern Oil and Gas (NOG) Inc for $250 million.
In a regulatory filing, the company said, “Reliance Marcellus, LLC (“RMLLC”) a wholly owned subsidiary of Reliance Industries Limited (“RIL”), announced the signing of 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 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 next seven years,” it added.
A Purchase and Sale Agreement (“PSA”) has been signed between RMLLC and NOG on February 3, 2021 for this sale and the transaction is subject to customary terms and conditions of closing, it said.
Citigroup Global Markets, Inc. acted as financial advisor to Reliance and Gibson, Dunn & Crutcher LLP served as its legal counsel.