RIL fails to expand acreage in Texas Eagle Ford Shale field
06 Oct 2010
Reliance Industries Ltd (RIL), the $45-billion Indian hydrocarbon giant, has failed to expand its acreage in Eagle Ford Shale field after talks collapsed with Chesapeake Energy Inc, the largest player in the Eagle Ford gas field in South Texas.
Citing sources Reuters today reported that RIL has ended talks for a stake in the Eagle Ford shale liquid play in south Texas with Oklahoma-based Chesapeake.
Chesapeake, the second-largest producer of natural gas in the US, holds around 400,000 acres in the Eagle Ford shale, making it to be the largest holder of shale acreage in the area.
Like other shale acreage holding companies, Chesapeake has been looking for a partner to invest and develop its 400,000 acres position in the Eagle Ford.
Chesapeake had said on 10 May 2010, ''By the end of the third quarter of 2010, the company intends to enter into a joint venture on its Eagle Ford Shale play that currently includes approximately 400,000 net acres of leasehold.''
Had the talks fructified, RIL would have added to its 45-per cent interest in approximately 212,000 net acres in Eagle Ford Shale fields, which it had acquired in June 2010 through a joint venture with Pioneer Natural Resources Co for $1.15 billion.