Rex Energy Corp. said it completed its Marcellus Shale joint venture (JV) transaction with Summit Discovery Resources II LLC, a subsidiary of Sumitomo Corp. (see Daily GPI, Sept. 1). After final adjustments, Sumitomo paid Rex about $99.5 million in cash for close to 13,000 net acres, a partial interest in some producing wells and associated midstream assets. the cash payment included a $7.5 million reimbursement for drilling-related expenses incurred to date, which was applied against the drilling carry. At closing Sumitomo's remaining drilling carry balance was about $51.2 million, which will be used to cover 80% of Rex's costs to drill and complete additional wells within the areas of mutual interest identified in the JV agreement.
A 50-gallon/minute mobile evaporator system designed to help natural gas producers recycle wastewater at the well site from hydraulic fracturing (fracking) processes will be introduced by GE in early 2011, the company said. The mobile evaporator, which would use thermal evaporation, would treat frack flowback and produced water on site, eliminating the need for transport, GE said.
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