From Rex Energy today:
STATE COLLEGE, Pa., Aug. 26, 2014 (GLOBE NEWSWIRE) -- Rex Energy (Nasdaq:REXX) today announced that it has signed agreements with MarkWest Energy Partners, L.P. (NYSE:MWE) ("MarkWest") that will expand the company's processing capacity in the Butler Operated Area.
MarkWest will increase the total processing capacity available in the Butler Operated Area through the construction of the Bluestone III and Bluestone IV processing and fractionation facilities at its Keystone Complex (which currently includes the Sarsen, Bluestone I and Bluestone II facilities). The Bluestone III facility, which is expected to be commissioned during the fourth quarter of 2015, will bring Rex Energy's total priority processing capacity in the Butler Operated Area to 280 MMcf/d. In addition, the company has secured incremental processing capacity above the 280 MMcf/d based upon plant performance and unused capacity of other operators. The Bluestone IV processing facility is expected to be commissioned during the second quarter of 2016 and will add approximately 125 MMcf/d of priority processing capacity, increasing the company's total priority processing capacity to 405 MMcf/d. The new arrangements also provide that MarkWest will install additional fractionation facilities at the Keystone Complex, and that Rex Energy has the right to incremental priority processing capacity in future expansions at the MarkWest Keystone complex.
"The recently announced Shell transaction will significantly expand our Butler Operated Area, and we are excited to partner with MarkWest to support our growth with this increased processing and fractionation capacity," said Tom Stabley, Chief Executive Officer of Rex Energy. "These agreements firmly position us to execute our development plans for both our legacy acreage and the new Shell acreage in the Butler Operated Area. Looking forward, having secured the right to additional capacity in future expansions provides a strong foundation for our long-term development plans in the region."
About Rex Energy Corporation
Rex Energy, headquartered in State College, Pennsylvania, is an independent oil and gas exploration and production company operating in the Appalachian and Illinois Basins within the United States. The company's strategy is to pursue its higher potential exploration drilling prospects while acquiring oil and natural gas properties complementary to its portfolio.