RIL sells stake in Marcellus Shale to BKV Chelsea for $126 million

Reliance Marcellus II LLC, a subsidiary of Reliance Holding USA, Inc. and Reliance Industries Limited (RIL), has completed the sale of one of its three upstream shale gas assets in the US to BKV Chelsea, an affiliate of Kalnin Ventures LLC, for $126 million. The asset, namely, Marcellus Shale Play, located in north-eastern and central Pennsylvania was operated by Carrizo Oil & Gas, Inc. RIL had bought a 60 per cent stake in it for $392 million in 2010. Additionally, under the definitive documents, a contingent amount of up to $11.25 million may be paid to RIL between 2018 and 2020 based on certain gas price thresholds being achieved.