Rex Energy has entered into a definitive purchase agreement with SWEPI, LP, an affiliate of Royal Dutch Shell, plc (“Shell”) to acquire a 100 percent interest in approximately 208,000 gross (207,000 net) acres prospective for the Marcellus, Upper Devonian/Burkett and Utica Shales in Pennsylvania and Ohio for approximately $120 million in cash, subject to customary closing adjustments.
The transaction is expected to close in September 2014. The assets to be acquired are located in Armstrong, Beaver, Butler, Lawrence, Mercer and Venango counties in Pennsylvania 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 approximately 298,000 gross acres.
This acquisition by Rex will probably lead to more drilling in the NW PA. People in the industry have spoken about oil in NW PA and the fact that it’s close to the surface. We’ll have to see if this is a good deal for Rex.