Rex Energy announces $175M Exploration In Marcellus and Utica Shales

Rex Energy Corp. has reportedly entered into a new partnership with Benefit Street Partners LLC targeted at exploring the Utica and Marcellus shales. The partnership is expected to invest a total of $175 million in exploring and developing this resource-heavy region, investigating 48,300 acres and potentially developing nearly 60 new wells across the area. The exploration will occur throughout the states of Pennsylvanian and Ohio.

The Future of Rex Energy Corp and Benefit Street Partners LLC

Benefit Street Partners LLC will operate as a credit provider and partner while Rex Energy Corp will complete the work needed throughout Marcellus and Utica shale. The partnership is expected to begin with a single payment of $37 million, designed to kick start the project and provide for the development of 22 wells. Once these wells have been developed, Benefit Street Partners will be able to create another 36 wells, and will invest up to $138 million in the project. Rex Energy Corp will be developing these wells while Benefit Street Partners will be paid out a total of 65% interest upon the investment. Through this partnership, Rex Energy Corp will be able to develop the Marcellus shale and Utica shale region faster than it could otherwise. Rex Energy Corp is already responsible for 37 wells across the Utica Shale, situated in Ohio. The company’s knowledge and experience will be leveraged by Benefit Street Partners to yield the best possible production results within this highly valuable region.

The Relationship Between Rex Energy Corp and the Marcellus Shale

Despite the extensive work that Rex Energy Corp has done throughout the nearby shale regions, the company required an investment in order to progress further into Marcellus shale. Rex Energy Corp has been struggling to manage its debt, and the cash investment from Benefit Street Partners was sorely needed. Many shale drilling companies have fallen upon difficult times due to fast expansion and a falling oil and gas market; these difficult times, however, are likely to be temporary, as the oil and gas prices are expected to begin to rise shortly. Companies such as Benefit Street Partners stand to make a significant amount of money by investing in the shale industry now and waiting until the industry recovers; the wells that are being produced by Rex Energy Corp will quickly increase in value once the price of oil and gas are no longer artificially depressed.

The new partnership between Rex Energy Corp and Benefit Street Partners is incredibly beneficial to both, as it provides Rex Energy Corp with the opportunity to continue exploring an incredibly valuable shale region while giving its creditor the option to continue expansion as the market improves. Though the oil and gas industry may have slowed its expansion, it is viagraforhealthyman.com still an incredibly strong industry; analysts project that oil and gas prices should begin to rise again by the end of 2016. Once price increases occur, companies that have remained stable or have even expanded will find their profits soaring. For more information about the oil and gas industry, contact the experts at Keystone Containment today.