New Delhi, Jun 23: Reliance Industries Ltd (RIL) is set top acquire 45 per cent stake in Pioneer Natural Resources" (PNR) shale gas assets in the United States.
The Mukesh Ambani-led company announced on Thursday, Jun 23 that it has signed agreement to take 45 per cent interest in highly prospective Eagle Ford Shale play for 1.15 billion dollars, equivalent to around 5,300 crore in rupees.
Pioneer, which produces about 28 million cubic feet gas per day from five wells in the 212,000 acres Eagle Ford Shale property, also released a statement on RIL's acquisition of PNR stake.
At closing RIL will pay Pioneer 266 million dollars in cash. Besides this, RIL pay an additional 879 million dollars to carry Pioneer"s share of future drilling costs.
Following the acquisition, RIL will own 95,300 acres of the property.
The joint venture agreement between Reliance Industries' subsidiary Reliance Eagleford Upstream LP and Pioneer will be effective from Jun 1, 2010.