Rex Energy adds 208K acres in shale play
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STATE COLLEGE – Rex Energy Corp. said Tuesday it acquired 208,000 acres in its Butler Operated Area, following an agreement with SWEPI LP, an affiliate of Royal Dutch Shell.
According to a news release, Rex said the assets it is purchasing for $120 million are in the Marcellus, Upper Devonian/Burkett and Utica shales in Pennsylvania and Ohio. The transaction is expected to close in September.
The assets to be acquired are in Armstrong, Beaver, Butler, Lawrence, Mercer and Venango counties and Columbiana and Mahoning counties in Ohio. The additional acreage, combined with recent leasing, will bring Rex Energy’s position in its Butler Operated Area to 298,000 acres.
Rex said the acquisition is expected to position it for a multi-year development plan of approximately 400 potential liquids-rich drilling locations.
The assets include about 16 million cubic feet per day of either currently producing or available to produce shale deposits with minimal capital investment. It said estimated proved reserves are about 21 billion cubic feet from the wells, with additional expected production of 13 MMcf per day available from wells invarious stages of development.
The company said it plans to add one to two rigs in 2015 to the newly acquired acreage.