REX ENERGY CORPORATION
STATE COLLEGE, Pa., May 19, 2015 (GLOBE NEWSWIRE) -- Rex Energy Corporation (Nasdaq:REXX) and Stonehenge Energy Resources II, L.P. announced that their respective affiliates, R.E. Gas Development, LLC (“Rex”) and Stonehenge Appalachia, LLC (“Stonehenge”) have entered into an agreement for Stonehenge to construct a natural gas gathering and compression system to transport natural gas production from the Moraine East Area in Butler County, Pennsylvania.
Stonehenge will build the system in 2015 to gather Rex’s production in the Moraine East Area, where drilling commenced during the first quarter of 2015. The initial part of the system will consist of a 20-mile trunkline, various gathering lines and a compressor station, which will fully support the early production from the area. The system’s initial capacity of 400 MMcf/d could also be expanded to facilitate future development and growth in the Moraine East Area. The Stonehenge system will deliver gas to the Bluestone processing plant owned and operated by a subsidiary of MarkWest Energy Partners, L.P. (MarkWest) (NYSE:MWE).
“This agreement is a critical component of our development strategy for the Moraine East Area, and we are excited to once again be partnering with Stonehenge for these essential services,” said Tom Stabley, Chief Executive Officer of Rex Energy. “The initial gathering system will provide ample capacity for our 2015 and 2016 development program, and the potential for expansion provides us with greater flexibility to support our future growth in the Moraine East Area.”
“This project allows Stonehenge to return to Butler County, again in support of the dominant producer in the area, Rex Energy. Work on the new midstream system is well underway, and we are focused on meeting the substantial production needs in this and subsequent years,” said Chuck Wilkinson, President of Stonehenge.
Forward-Looking Statements
This release contains 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 Rex Energy’s Annual Report on Form 10-K for the year ended December 31, 2014 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
Rex Energy, headquartered in State College, Pennsylvania, is an independent oil and gas exploration and production company operating in the Appalachian and Illinois Basins within the United States. The company’s strategy is to pursue its higher potential exploration drilling prospects while acquiring oil and natural gas properties complementary to its portfolio.
About Stonehenge Energy Resources II, L.P.
Stonehenge designs, builds, owns and operates natural gas midstream facilities to support its producer-partners in the optimum development of their resources. Stonehenge is headquartered in Westminster, Colorado, is backed by Energy Spectrum Capital, a leading private equity firm located in Dallas, Texas, and is supported by Kahuna Ventures LLC, a midstream-focused engineering consulting company located in Westminster, Colorado.
For more information contact: Investor Relations (814) 278-7130 InvestorRelations@rexenergycorp.com
