STATE COLLEGE, Pa., June 14, 2016 (GLOBE NEWSWIRE) -- Rex Energy Corporation (Nasdaq:REXX) (“Rex Energy”) today announced that it entered into a purchase and sale agreement with Campbell Development Group, LLC (“Campbell”) pursuant to which Campbell will acquire the company’s Illinois Basin assets. Rex Energy is selling its entire interest in the basin and expects to receive proceeds at closing of approximately $40 million (prior to customary closing and post-closing adjustments) with the potential for additional proceeds of up to $10 million over the next three years based on commodity prices during that time frame. Included in the sale are approximately 76,000 net acres in Illinois, Indiana and Kentucky; the assets are currently producing approximately 1,700 net barrels per day. Proceeds from the sale are expected to be used to pay down the revolving line of credit and for general corporate purposes. Rex Energy is undergoing its regularly scheduled borrowing base redetermination, and, pro forma for the Illinois Basin asset transaction, currently expects to maintain its borrowing base at $190 million. The company expects the transaction to close in the third quarter of 2016, subject to customary closing conditions and required approvals.
“First and foremost, I would like to thank all of our Illinois Basin employees for their hard work and dedication throughout the years,” said Tom Stabley, Rex Energy’s President and Chief Executive Officer. “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.”
Forward-Looking Statements
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements are based on current beliefs and expectations and involve certain assumptions or estimates that involve various risks and uncertainties, such as financial market conditions, changes in commodities prices and the other risks discussed in detail in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 and other subsequent filings with the Securities and Exchange Commission. Readers should not place undue reliance on any such forward-looking statements, which are made only as of the date hereof. Rex Energy has no duty, and assumes no obligation, to update forward-looking statements as a result of new information, future events or changes in the Company’s expectations.
About Rex Energy Corporation
Headquartered in State College, Pennsylvania, Rex Energy is an independent oil and gas exploration and production company with its core operations in the Appalachian Basin. The company’s strategy is to pursue its higher potential exploration drilling prospects while acquiring oil and natural gas properties complementary to its portfolio.