Rex Energy Corp., State College, Pa., has entered a joint-venture agreement to develop 58 wells in its Moraine East and Warrior North prospects in Pennsylvania and Ohio, respectively.
An affiliate of Benefit Street Partners LLC (BSP) has committed to fund 15% of the first 16 wells in Moraine East, 12 of which have already been drilled and completed (OGJ Online, Mar. 31, 2015), and 65% of six wells in Warrior North of which three have been drilled and completed.
The $175-million JV also earns BSP a 15-20% assignment in Moraine East and Warrior North for all acreage within each unit it participates in.
The exploration and development agreement covers 42,000 acres in Moraine East and about 6,300 acres in Warrior North. Initial commitment for 22 wells is $37 million, with a cash reimbursement of $20 million for 15 wells drilled and completed in 2015 once those are placed into sales. The company has an option to participate in 36 additional wells for an incremental capital commitment of $138 million.