"The sale of the Illinois Basin assets is another important step for Rex Energy toward improving our liquidity position and providing greater capital efficiency as we continue with the development of our core Appalachian Basin assets, in particular our Moraine East area," said CEO Tom Stabley.
Included in the deal, which is expected to close sometime in 3Q2016, are 76,000 net acres. The assets, Rex said, are currently producing 1,700 b/d of oil. The sale price does not include closing costs, but Rex said it could realize another $10 million in proceeds over the next three years depending on commodity prices. It didn't provide other details on that aspect of the sale.
Rex is selling all of its interest in the basin, transitioning the company to an Appalachian pure-play with all of its assets now located in Ohio and Pennsylvania. The company acquired its Moraine East assets in a larger 2014 deal with an affiliate of Royal Dutch Shell plc for $120 million (see Shale Daily, Aug. 13, 2014). They are located in Western Pennsylvania's Butler County, which lies to the north of Rex's core legacy acreage there.Read more by clicking here.
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