NEW YORK (Dow Jones Newswires), Dec. 27, 2011
Rex Energy said it plans to pursue strategic options for all its properties in the Rockies region and will look to divest its stake in midstream assets in Butler County, Pa., as it wants to focus more on Marcellus and Utica shale exploration.
Rex, an oil and gas company with operations also in the Illinois and Appalachian basins, said it is considering selling or finding a joint venture for its Rockies properties, which include about 48,000 acres of undeveloped land, and selling its 28 perecent interest in Butler County midstream assets. The Butler assets include its stake in the Sarsen and Bluestone cryogenic gas-processing plants and related infrastructure.
Rex also forecast its average daily production in its first quarter at 56 million to 60 million cubic feet equivalent a day, up from 27.8 MMcfe a day in the first quarter of 2011.
Rex's midstream partner, Keystone Midstream, recently received all the necessary permits to begin construction of the Bluestone processing plant, which is expected to be commissioned in May 2012.
Last month, Rex said it swung to a third-quarter loss on sharply higher exploration expenses, despite higher revenue.
Shares closed Friday at $14.86 and were inactive premarket.
Copyright (c) 2011 Dow Jones & Company, Inc.
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