PennEnergy Resources, LLC recently agreed to acquire all the assets of Rex Energy Corporation for a cash purchase price of $600.5 million.
The assets include cash accounts of $29.5 million held by Rex used to collateralize firm transportation contracts that will be released to PennEnergy at close.
Rex filed for bankruptcy protection on May 18. The United States Bankruptcy Court for the Western District of Pennsylvania has approved the transaction. Closing is expected to occur on Sept. 28.
On a combined basis, PennEnergy Resources will operate 329 horizontal producing shale wells and 203,500 gross leasehold acres, primarily in the Pennsylvania counties of Butler, Beaver, and Armstrong. The company expects that it will have a combined gross production of approximately 700 million cubic feet per day of natural gas equivalents (Mmcfe) and net production of 450 Mmcfe per day.
“We are thrilled to have the opportunity to integrate the assets of Rex Energy into PennEnergy,” Richard D. Weber, PennEnergy chair and CEO said. “Almost all of the combined assets of the two companies are in the core of the Marcellus Shale, and with nearly 20-years of drilling inventory we have the opportunity to continue delivering growth at attractive rates of returns for many years to come.”