India's largest private-sector company Reliance Industries RIL will invest $1.7 billion in a joint venture with US firm Atlas Energy Resources that will develop a shale property to yield natural gas.
Reliance will pay $339 million in cash at closing and will fund $1.36 billion of capital costs, the drilling carry, to acquire a 40% interest in approximately 300,000 net acres 120,000 net to Reliance of undeveloped leasehold land held by Atlas. Atlas will retain the remaining 60% interest in the acreage.
The $1.36 billion provided by Reliance will fund 75% of Atlas's portion of the drilling and completion costs until the drilling carry is fully utilised. Atlas has 5.5 years to utilise the...
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