India’s Reliance to sell Eagle Ford shale assets to Sundance Energy

Indian conglomerate Reliance Industries’ subsidiary Reliance Eagleford Upstream has reached an agreement to sell certain assets in the Eagle Ford shale play in the US to Sundance Energy.

Valued at $100m, the deal includes Reliance’s interest in acreage, producing wells and related assets in the western portion of its shale position.

Pioneer Natural Resources and Reliance are partners in a joint venture (JV) that holds assets in the shale play.

The transaction follows Pioneer’s agreement to divest a land package of 21,900 net acres in the Eagle Ford Shale for around $221.5m. Assets to be sold are located in Atascosa, La Salle, Live Oak and McMullen Counties in the state of Texas.

According to Reliance, the Eagle Ford Shale assets being divested were not part of the JV’s near-term development plan and the company will continue to hold an interest in the remaining Eagle Ford assets that are core to its development priorities.

Subject to customary closing conditions, the transaction is scheduled to complete in Q1 2019.

In October last year, Reliance Marcellus II agreed to sell all of its interest in shale gas assets in north-eastern and central Pennsylvania, US, to Kalnin Ventures’ affiliate BKV Chelsea for $126m.

Reliance also has interest in the Marcellus shale play in southwestern Pennsylvania, in partnership with Chevron.