Atlas Energy Signs A Deal With Reliance Industries (ATLS)

Atlas Energy Inc. (NASDAQ: ATLS) stock soared after the company announced a joint venture with Reliance Industries Ltd. The Joint venture is worth $1.7 billion and will engage in the development of Marcellus acreage. Reliance Industries is the largest private sector company in India. According to MarketWatch, Atlas Energy (ATLS) will transfer an interest in 120,000 net acres of Marcellus Shale to Reliance.

Reliance Industries said, “Low operating costs and proximity to U.S. northeast gas markets combine to make the Marcellus one of the most economically attractive unconventional natural gas resource plays in North America." Reliance plans to drill 3,000 wells in the shale. Both the companies expect to close the deal by the end of April 2010. Atlas Energy stock jumped as high as 19% on Friday morning.