Pennsylvania-based Rex Energy has entered an agreement with Benefit Street Partners to jointly develop oil and gas wells in the Moraine East and Warrior North areas in Pennsylvania and Ohio, respectively. Rex Energy is an independent oil and gas exploration and production company operating in the Appalachian and Illinois Basins in United States. Established in 2008, BSP and its affiliates manage more than $11 billion in assets across a broad range of credit strategies.
Total consideration for the transaction is expected to be $175 million, with $37 million committed at closing for the first 22 wells, according to a written statement issued by Rex Energy’s investment relations representative. Once the first 15 wells within the joint development area are flowing into sales, the company will receive reimbursement of approximately $20 million, as these wells were drilled and completed in 2015. After the initial commitment of 22 wells, the company will have approximately 30 percent of its Moraine East acreage held by production/held by operations. Upon completion of the 58 well programs, the company will have approximately 42,000 acres HBP in Moraine East and approximately 10,400 acres in Warrior North.
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