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STATE COLLEGE, Pa., Sep 21, 2009 (GlobeNewswire via COMTEX News Network) -- Rex Energy Corporation ("Rex Energy") (Nasdaq:REXX) announced today that its bank group has unanimously reaffirmed the $80 million borrowing base under its revolving credit facility as part of the regularly scheduled semi-annual borrowing base redetermination. No amendments were made to the terms of the revolving credit facility in connection with the borrowing base redetermination. As of September 21, 2009, the company had $15 million outstanding under the credit facility, which will mature September 28, 2012.
Under the terms of the revolving credit facility, the borrowing base is redetermined by the bank group semi-annually utilizing the banks' estimates of reserves and future oil and gas prices. The bank group is comprised of KeyBank which leads the facility; Allied Irish Banks, P.L.C.; BNP Paribas; Capital One, N.A.; and M&T Bank. The next redetermination of the borrowing base is scheduled for April 2010.
Concerning its Marcellus Shale drilling operations, Rex Energy has retained Union Drilling, Inc. to operate a second rig in its Marcellus Shale horizontal well drilling projects. The rig is expected to arrive on location in late September 2009 to drill Rex Energy's first horizontal well in central Pennsylvania. Thereafter, the rig is scheduled to be moved to Butler County, Pennsylvania where it will remain to complete the company's 2009 and 2010 drilling programs in the Butler County project area.
About Rex Energy Corporation
Rex Energy Corporation is an independent oil and gas company operating in the Illinois Basin and the Appalachian Basin of the United States. The company has pursued a balanced growth strategy of exploiting its sizable inventory of lower risk developmental drilling locations, pursuing its higher potential exploration drilling prospects and actively seeking to acquire complementary oil and natural gas properties. For more information about the company, please visit www.rexenergy.com. Please note that the company routinely posts important information about the company under the investor relations section of its web site.
The Rex Energy logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5489
Forward-Looking Statements
Except for historical information, statements made in this release, including those relating to significant potential, future earnings, cash flow, capital expenditures, production growth and planned number of wells, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and the company's future performance are subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, adverse economic conditions in the United States and globally; the difficult and adverse conditions in the domestic and global capital and credit markets; domestic and global demand for oil and natural gas; sustained or further declines in the prices the company receives for oil and natural gas adversely affecting operating results and cash flow; the effects of government regulation, permitting and other legal requirements; the quality of Rex Energy's properties with regard to, among other things, the existence of reserves in economic quantities; uncertainties about the estimates of the company's oil and natural gas reserves; the company's ability to increase production and oil and natural gas income through exploration and development; Rex Energy's ability to successfully apply horizontal drilling techniques and tertiary recovery methods; the number of well locations to be drilled, the cost to drill and the time frame within which they will be drilled; drilling and operating risks; the availability of equipment, such as drilling rigs and transportation pipelines; changes in the company's drilling plans and related budgets; and the adequacy of capital resources and liquidity including, but not limited to, access to additional borrowing capacity. The company undertakes no obligation to publicly update or revise any forward-looking statements. Further information on risks and uncertainties is available in the company's filings with the Securities and Exchange Commission, which are incorporated by reference.
The company's internal estimates of reserves may be subject to revision and may be different from estimates by the company's external reservoir engineers at year end. Although the company believes the expectations and forecasts reflected in these and other forward-looking statements are reasonable, it can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Rex Energy Corporation
CONTACT: Rex Energy Corporation Julia Williams, Investor Relations Coordinator (814) 278-7130 jwilliams@rexenergycorp.com
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