Reliance Industries share price dips 2% as arm sells assets in Eagle Ford shale for $100 mn

Shares of Reliance Industries (RIL) dipped 2 per cent on Wednesday after the company said its subsidiary Reliance Eagleford Upstream Holding LP will sell certain assets in Eagle Ford shale to Sundance Energy Inc for a consideration of $100 million (over Rs 650 crore). Reliance Eagleford Upstream Holding LP is a subsidiary of both Reliance Holding USA, Inc and Reliance Industries.

Reliance Eagleford Upstream Holding LP has signed 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 for approximate consideration of $100 million, it said in a statement.

The assets being sold are located in Atascosa, La Salle, Live Oak and McMullen Counties, Texas.

Reliance continues to retain its interest in the remaining Eagle Ford assets that are core to its development priorities, the company said.

The deal is subject to certain customary adjustments and closing terms and conditions.

The sale is expected to close in the first quarter of FY2018-19.

RIL said the "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".