US-based Rex Energy completed the previously announced sale of its Illinois Basin assets to Campbell Development Group for $40m.
As part of the transaction announced in June this year, the company sold about 76,000 net acres in Illinois, Indiana and Kentucky, US. At present, these assets are producing about 1,700 net barrels per day.
Rex Energy said that the company is selling its complete interest in the basin and has received net proceeds with the potential for additional proceeds of up to $10m over the next three years.
The company plans to use the proceeds to pay down the revolving line of credit and also for general corporate purposes.
Rex Energy president and CEO Tom Stabley previously said that the sale is a vital step to improve its liquidity position and providing better capital efficiency as it continues to develop its core Appalachian Basin assets.
Rex Energy’s operating revenue from continuing operations for the three and six months ended 30 June stood at $31.3m and $57m, respectively representing a 13% and 30% fall over the same periods last year.
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By GlobalDataThe company’s second quarter production volumes from continuing operations were 199.1 millions of cubic feet equivalent per day, a 2% rise over the second quarter of last year.
Its strategy is to pursue potential exploration drilling prospects, while simultaneously acquiring oil and natural gas properties complementary to its portfolio.
