Rex Energy Corp.

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NEW, Rex Energy Corp., State College, Pa., (Nasdaq: REXX) has retained KeyBanc Capital Markets Inc. to sell all of the company's properties in Texas and New Mexico, predominantly in the Permian Basin. Rex Energy's southwestern operations are primarily in Lea and Eddy counties, New Mexico, and Terrell County, Texas, with approximately 15,000 gross (10,000 net) acres in its southwestern region. As of year-end 2007, Rex Energy's average net production from its southwest region assets was approximately 1.8 million cubic feet equivalent per day for the year and 281 barrels of oil equivalent for fourth-quarter 2007. It had drilling and redevelopment projects in the Queen, Leonard, Canyon and San Andres formations with interests in 152 wells (93 operated). Proved reserves were 1.8 million barrels equivalent, about 11% of Rex's total. The company additionally held 1,500 net undeveloped acres. 24 • A&D Watch • October 2008 On The Market The proceeds of the anticipated sale are expected to be used to fund a portion of Rex Energy's planned capital budget items, including its Marcellus shale exploration projects in the Appalachian Basin and its Alkali-Surfactant-Polymer (ASP) projects in the Illinois Basin. Rex Energy president and chief executive Benjamin W. Hulburt says, "Our decision to divest these noncore assets is part of our strategic plan to focus our efforts and capital investment in our ASP flood projects in the Illinois Basin and our Marcellus shale exploration projects in the Appalachian Basin." Contact Kevin Hays, 214-414-2611.