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Rex Energy Adding NatGas Gathering System For New Pennsylvania Acreage

Stonehenge Energy Resources II LP has agreed to construct a 400 MMcf/d natural gas gathering system for Rex Energy Corp.'s recently acquired acreage in northern Butler County, PA.

Rex began drilling on the acreage, which it calls the Moraine East area, during the first quarter. Management said at the time that early well data was encouraging and analogous to the company's core acreage in the southern part of the county (seeShale Daily, March 31).

Stonehenge President Chuck Wilkinson said work on the gathering system is under way, and it is expected to be complete this year. Initially, the system would consist of a 20-mile trunkline, various gathering lines and a compressor station to support early production from the area.

Rex acquired 207,000 net acres in Pennsylvania and northeast Ohio last August from Royal Dutch Shell plc affiliate SWEPI LP, including 24,000 net acres that formed the Moraine East area (see Shale Daily, Aug. 13, 2014).

Stonehenge's system would collect natural gas for delivery to MarkWest Energy Partners LP's Bluestone processing facility in southwestern Butler County. Rex CEO Tom Stabley said its 400 MMcf/d capacity would serve the company's production this year and next, but he added that the system could be expanded after that.

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