Rex Energy Corp. approved a capital expenditure budget of $100 million for 2010. The company will spend $81.5 million of these funds on its Marcellus Shale properties in Appalachia, and the balance on its enhanced oil recovery project in the Illinois basin.
Rex Energy also reported its proved reserves for oil and gas as of the end of 2009. The company has 125.3 billion cubic feet equivalent of proved reserves, consisting of 11.5 million barrels of crude oil and natural gas liquids, and 56.2 billion cubic feet of natural gas. This is an increase of 90% from 2008 year end levels.
Benjamin W. Hulburt, the CEO of Rex Energy said, “Our 2010 capital budget reflects our continued confidence in the potential of our Marcellus Shale acreage due to the successful horizontal wells we have drilled in each of our three major projects areas. In 2010, we plan to accelerate our Marcellus Shale drilling activities significantly, as well as commence operations on our first alkali-surfactant-polymer unit in the Illinois Basin.”
Rex Energy is continuing to increase its acreage located in the Marcellus Shale in Pennsylvania, and has budgeted $15 million in 2010 for land acquisition. The company has 60,000 acres under net lease.