Reliance announces sale of select assets in shale gas business in USA

29-Mar-18

Reliance Eagleford Upstream Holding LP (Reliance), a subsidiary of both Reliance Holding USA, Inc., and Reliance Industries Limited, announced the signing of a purchase and sale agreement with Sundance Energy Inc. to divest its interest in certain acreage, producing wells and related assets in the western portion of its Eagle Ford shale position (hereinafter called as ‘Assets’) for approximate consideration of USD100 Million, subject to certain customary adjustments and closing terms and conditions. This transaction is in conjunction with sales made by Pioneer Natural Resources USA Inc and Newpek LLC, the other working interest owners in the Joint Development with Reliance.The Assets being sold are located in Atascosa, La Salle, Live Oak and McMullen Counties, Texas and were not part of near term development plan of the Joint Development. Reliance continues to retain its interest in the remaining Eagle Ford assets that are core to its development priorities.The sale is expected to close in 1QFY19 and is subject to customary closing conditions.
Sundance Energy Inc. doesn’t belong to the promoter group and the transaction does not fall within related party transactions.