Rex Energy (REXX) announced the purchase of 26,900 gross, or 18,700 net acres in the Denver Julesburg Basin that is prospective for the Niobrara Shale. The company paid $18.7 million for the properties.
Rex Energy said that the acreage is near the Silo Field in Laramie County, Wyoming, and the company expects the deal to close within thirty days.
Rex Energy’s acreage that has the potential for Niobara Shale development is distributed as follows:
Weld County, Colorado - 11,800 gross, or 6,700 net acres.
Laramie County, Wyoming - 48,500 gross, or 32,400 net acres.
Rex Energy has an average cost per acre of $600 in the Niobrara Shale, and plans to start a horizontal drilling program in July 2010.