Big news; Rex buys Shell's holdings

Rex Energy is expanding in Pennsylvania and Ohio with the acquisition of about 208,000 acres from Royal Dutch Shell for $120 million in cash in a deal that stands to increase the company’s footprint in the Appalachian Basin by 200 percent, the State College-based driller said Tuesday.

Rex Energy said it struck a deal with affiliate of Shell called SWEPI to acquire a 100 percent interest in 208,000 acres in the Marcellus, Upper Devonian/Burkett and Utica shales in Pennsylvania and Ohio.

The acreage is in Armstrong, Beaver, Butler, Lawrence, Mercer and Venango counties in Pennsylvania and Columbiana and Mahoning counties in Ohio, which the company calls its “Butler operated area.”

http://powersource.post-gazette.com/powersource/companies-powersour...

Hat  tip to Philip Thackery.

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Permalink Reply by paleface on August 21, 2014 at 6:59am

Your wasting my time sorry can't help you.

Permalink Reply by Dexter Green on August 21, 2014 at 7:33am

I'm wasting your time by asking you to present a logical argument based on facts?  You don't get out much, do you?  I assume the lack of leaving the house is the cause of your pale appearance as well.  Just a hunch. 

Permalink Reply by Trapper on August 25, 2014 at 9:53am
Will all the landowners affected be notified or contacted by Rex after closing is completed on the deal?
Mike MurphyPermalink Reply by Mike Murphy on August 25, 2014 at 11:30am

wonder why RON;s Texas connection didnt swoop in and gather up those cheap acres for there big leasing program he talks about ? must have been too cheap for their big Texas pockets 

Permalink Reply by paleface on August 25, 2014 at 12:54pm

 PA. and Ohio is starting to look like Texas there's a lot of wells drilled in those two states.

Mike MurphyPermalink Reply by Mike Murphy on August 25, 2014 at 6:57pm

Paleface   their busy in West Virginia too  especially in the northern panhandle .....I live next to rt7 out of New Martinsville and have averaged a rig move going by here one a week for 6 weeks now and CHK just drilled the Messenger well about 5 miles from here into the Utica with a wellhead pressure over 10,000 psi.....we have  only just begun ........pipeline projects everywhere you look  what is also good I know of three boys who now have jobs in the oil patch that were unemployed for a long time   JOBS JOBS JOBS 

Mike MurphyPermalink Reply by Mike Murphy on August 25, 2014 at 11:33am

from an old lease I have if it is not stated in your lease that you must be notified of transfer of leaseholder you will not be notified 

Permalink Reply by Gas heir on August 25, 2014 at 2:45pm

Our lease is a HBP lease that Shell bought from Vista in 2013. Vista sent us a letter to tell us we were sold to shell. I check the mercer county recorder's site every few days, so far it hasn't shown up yet........Ill keep watching

Permalink Reply by Philip Brutz on August 26, 2014 at 5:21am

Rex Energy Announces Agreements to Expand Processing Capacity in the Butler Operated Area

STATE COLLEGE, Pa., Aug. 26, 2014 (GLOBE NEWSWIRE) -- Rex Energy (REXX) today announced that it has signed agreements with MarkWest Energy Partners, L.P. (MWE) ("MarkWest") that will expand the company's processing capacity in the Butler Operated Area.

MarkWest will increase the total processing capacity available in the Butler Operated Area through the construction of the Bluestone III and Bluestone IV processing and fractionation facilities at its Keystone Complex (which currently includes the Sarsen, Bluestone I and Bluestone II facilities). The Bluestone III facility, which is expected to be commissioned during the fourth quarter of 2015, will bring Rex Energy's total priority processing capacity in the Butler Operated Area to 280 MMcf/d. In addition, the company has secured incremental processing capacity above the 280 MMcf/d based upon plant performance and unused capacity of other operators. The Bluestone IV processing facility is expected to be commissioned during the second quarter of 2016 and will add approximately 125 MMcf/d of priority processing capacity, increasing the company's total priority processing capacity to 405 MMcf/d. The new arrangements also provide that MarkWest will install additional fractionation facilities at the Keystone Complex, and that Rex Energy has the right to incremental priority processing capacity in future expansions at the MarkWest Keystone complex.  

"The recently announced Shell transaction will significantly expand our Butler Operated Area, and we are excited to partner with MarkWest to support our growth with this increased processing and fractionation capacity," said Tom Stabley, Chief Executive Officer of Rex Energy. "These agreements firmly position us to execute our development plans for both our legacy acreage and the new Shell acreage in the Butler Operated Area. Looking forward, having secured the right to additional capacity in future expansions provides a strong foundation for our long-term development plans in the region.http://seekingalpha.com/pr/10848375-rex-energy-announces-agreements...

Permalink Reply by Trapper on August 26, 2014 at 5:39am
Thank you Philip.
They sure aren't wasting any time! Wonder when pipeline row agreements will begin? Soon I bet.
Can anyone doubt the Shell Cracker is coming to town?
DRILL BABY DRILL
Permalink Reply by Trapper on September 2, 2014 at 1:12pm

http://www.rexenergy.com/shell.html

Noticed this today on Rex's website......I like it!

Mike MurphyPermalink Reply by Mike Murphy on September 2, 2014 at 2:12pm

Very informative post Trapper thank you

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