RIL in talks with Atlas Energy to develop Marcellus Shale gas project
17 Mar 2010
Reliance Industries (RIL), which lost out on its bid to acquire Dutch petrochemical major LyondellBasell, is reportedly planning to jointly develop Atlas Energy's Marcellus Shale gas project through a joint venture with the US independent oil and gas company.
Moon Township, Pennsylvania-based Atlas Energy is a developer and producer of natural gas and oil in the Appalachian, Michigan, and Illinois Basins.
Reuters reported yesterday, citing a source with direct knowledge of the matter, that RIL was seeking a joint venture with Atlas Energy to develop the Marcellus Shale gas project.
Some geologists have said that the volume of natural gas that can be extracted from Marcellus Shale could be sufficient to meet the needs of the US for a decade.
Atlas Energy controls approximately 519,000 acres in Marcelluss, Shale mainly in southwestern Pennsylvania, of which 266,000 are in core drilling areas. It has drilled approximately 180 vertical wells and 18 horizontal wells through 31 December 2009. The company said that it has identified over 3,150 horizontal Marcellus Shale drilling locations on its acreage.
The company also holds the mineral rights to over one million acres in Pennsylvania, West Virginia, Ohio, New York, Tennessee, Michigan and Indiana.