Reliance Marcellus LLC has entered into agreements to divest all of its interest in certain upstream assets in the Marcellus shale play of south-western Pennsylvania to Northern Oil & Gas Inc for $250 million, the company said on Thursday.

The deal also entitles Reliance Industries Ltd (RIL) to purchase 3.25 million common shares of Northern Oil & Gas at an exercise price of $14 per common share in next seven years. The assets are currently operated by various affiliates of EQT Corporation, RIL said in a statement.

The company said that a purchase and sale agreement has been signed between Reliance Marcellus and NOG on February 3, 2021 for this sale and the transaction is subject to customary terms and conditions of closing.

Citigroup Global Markets was the financial advisor to RIL and Gibson, Dunn & Crutcher LLP served as its legal counsel.
In 2017, RIL sold first of its shale gas ventures, upstream Marcellus shale gas assets in northeastern and central Pennsylvania in the US, for $126 million.