Rex Energy Corp., State College, Pa., has agreed to acquire 100% interest in 208,000 gross acres prospective for the Marcellus, Upper Devonian-Burkett, and Utica shales in Pennsylvania and Ohio from Swepi LP, an affiliate of Royal Dutch Shell PLC, for $120 million in cash. The transaction is expected to close in September.
The acreage—in Armstrong, Beaver, Butler, Lawrence, Mercer, and Venango counties in Pennsylvania, and Columbiana and Mahoning counties in Ohio—will bring Rex Energy’s position in its Butler operated area to 298,000 gross acres (OGJ Online, Nov. 2, 2011; Aug. 24, 2012).
“With this transaction, we can strategically expand our development program in the Butler operated area, which we believe will bring significant upside benefits to Rex Energy,” said Tom Stabley, Rex Energy chief executive officer.
The acquisition along with future bolt-on leasing are expected to position the company for a multiyear development plan of 400 potential liquids-rich drilling locations on 750-ft spacing between laterals.
The acreage encompasses 16 MMcfd either currently producing or available to produce, with additional expected production of 13 MMcfd available from wells in various stages of development. Estimated proved reserves total 21 bcf of gas equivalent.