RIL zooms 3 pc on BSE after Marcellus Shale deal | business | Hindustan Times
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RIL zooms 3 pc on BSE after Marcellus Shale deal

business Updated: Sep 13, 2010 10:55 IST
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Shares of Reliance Industries on Monday rose nearly 3 per cent on the BSE, a day after it announced the completion of its deal to acquire a 60 per cent stake in the Marcellus Shale gas asset in the US for $ 392 million.

The scrip of the Mumbai-based firm opened on a strong note, jumping 2.68 per cent to touch an early high of Rs 983.70 on the Bombay Stock Exchange.

RIL was later trading at Rs 976, up 1.88 per cent.

Witnessing a similar trend, the stock gained 1.76 per cent to Rs 975.40 on the National Stock Exchange.

In the last trading session, the RIL counter had ended 0.22 per cent lower at Rs 957.95 on the BSE.

On August 5, Reliance had announced that it will buy its third shale gas asset in the United States. Its subsidiary, Reliance Marcellus II Llc, had signed a definitive transaction agreement to enter into a joint venture with US-based Carrizo Oil and Gas for development of the Marcellus Shale asset.

In a statement issued on Saturday, Carrizo said it has "closed its previously announced joint venture transaction in the Marcellus Shale with a subsidiary of Reliance Industries".

"The new Carrizo-Reliance joint venture agreement covers approximately 1,04,400 gross acres in Northern and Central Pennsylvania. Under the terms of the agreement, Carrizo retains a 40 per cent working interest in the acreage and Reliance owns 60 per cent," the statement said.

Amid a firming market trend, the BSE oil and gas index was up by 133 points at 10,308.40 today. The Bombay Stock Exchange Sensex was also trading higher by 269.59 points at 19,064.99.