PennEnergy Resources has agreed to purchase a State College-based energy corporation in a multi-million dollar acquisition.
Rex Energy Corporation, located along Walker Drive in College Township, filed for bankruptcy protection in May, the Pittsburgh Post-Gazette reported. According to a Securities and Exchange Commission quarterly report, the corporation could not come to an agreement with lenders after missing a debt payment in April.
Pittsburgh-based PennEnergy announced the acquisition Thursday, saying the $600.5 million purchase included “substantially all the assets of Rex Energy Corporation,” and included “cash assets of $29.5 million held by Rex used to collateralize firm transportation contracts that will be released to PennEnergy at close.”
The transaction was approved by the U.S. Bankruptcy Court for the Western District of Pennsylvania, the PennEnergy news release said. Closing is expected to occur on Sept. 28.
PennEnergy will operate a combined 329 horizontal producing shale wells, the release said, with a combined gross production of about 700 million cubic-feet-per-day of natural gas equivalents.
Representatives at Rex Energy declined to comment on the purchase.