Rex Energy Corporation Completes Sale, Nets $17.3 Millionadmin
Rex Energy Corporation announced that it has closed on the sale of its Southwestern Region assets for net cash proceeds of approximately $17.3 million, subject to any final closing adjustments. The sale to Adventure Exploration Partners, LLC of Midland, Texas consisted of properties in Texas and New Mexico, predominately located in the Permian Basin.
The sale of these non-core assets was part of Rex Energy’s strategic plan to focus their efforts on Marcellus Shale drilling projects in the Appalachian Basin and the Lawrence Field Alkali-Surfactant-Polymer (“ASP”) Flood Project development in the Illinois Basin.
Benjamin W. Hulburt, President and Chief Executive Officer of Rex Energy, said, “Given the current commodity prices and economic environment, I am very pleased with our team’s ability to successfully divest these non-core assets.” Hulburt continued, “Rex Energy is dedicated to maintaining a conservative balance sheet, and the cash generated from the sale of our Southwestern Region assets will be used to uphold this commitment as well as supplement our 2009 capital budget.”
KeyBanc Capital Markets, Inc. served as Rex Energy’s advisor in connection with the transaction.