Rex Energy Corp. and Stonehenge Energy Resources LP have formed a midstream joint venture (JV), Keystone Midstream Services LLC, that will initially invest up to $25 million to build a high-pressure gathering system and cryogenic gas processing plant in Butler County, PA. State College, PA-based Rex Energy owns 40% of Keystone Midstream and has contributed to its existing gathering system in Butler County. Stonehenge owns 60% of the JV and has contributed its 40 MMcf/d Sarsen cryogenic gas plant. In conjunction with the formation of the JV, Rex Energy has entered into a gathering and processing agreement in which it has reserved 20 MMcf/d of the Sarsen plant’s capacity in 2010 and 40 MMcf/d thereafter. Westminster, CO-based Stonehenge, a portfolio company of private equity firm Energy Spectrum Capital, will manage the operations of Keystone Midstream. Rex Energy is an independent oil and gas company operating in the Illinois and Appalachian basins.

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