March 25, 2017 8:44 AM ET

Energy Equipment and Services

Company Overview of R.E. Gas Development, LLC

Company Overview

R.E. Gas Development, LLC engages in drilling for oil and gas. The company was incorporated in 2007 and is based in Evans City, Pennsylvania. R.E. Gas Development, LLC operates as a subsidiary of Rex Energy Corporation.

802 Prospect Road

Evans City, PA 16033

United States

Founded in 2007

Phone:

724-789-0063

Key Executives for R.E. Gas Development, LLC

President and Chief Executive Officer
Age: 42
Compensation as of Fiscal Year 2016.

R.E. Gas Development, LLC Key Developments

Jones, Gregg, Creehan & Gerace LLP Announces Continuation of Class Action Lawsuit against Rex Energy Corporation and R.E. Gas Development, LLC

Jones, Gregg, Creehan & Gerace LLP announces a panel of the Pennsylvania Superior Court on January 17, 2017, unanimously overturned a trial court’s refusal to certify a class action brought by landowners against Rex Energy Corporation and R.E. Gas Development, LLC. Cardinale versus R.E. Gas Development, LLC and Rex Energy Corporation, 2017 Pa.Super. 13. The appellate court remanded the landowners’ claims against Rex to the trial court for further proceedings. The landowners’ claims against Rex arise out of roughly 112 oil and gas leases signed in 2008 covering approximately 4,000 acres of Marcellus Shale. Rex did not pay the bonus payments under those leases. According to court records, the claims against Rex aggregate more than $8 million plus 8 years of interest. Rex on January 31, 2017, requested that the appellate court grant reargument en banc and/or reconsideration by the panel. The landowners will oppose Rex’ request for reargument or reconsideration.

R. E. Gas Development, LLC Enters into Joint Exploration and Development Agreement with Ohpa Drillco, LLC

On March 1, 2016, R. E. Gas Development, LLC (Rex), entered into a Joint Exploration and Development Agreement with OhPa Drillco, LLC (Drillco) to jointly develop 58 specifically designated wells in the company’s Moraine East and Warrior North operated areas. Under the Joint Development Agreement, Drillco has committed to fund 15% of various drilling, completing and equipping costs (well costs) for the first 16 wells in Moraine East at a specified rate, 12 of which have already been drilled and completed, and 65% of the well costs of six wells in Warrior North at a specified rate, three of which have already been drilled and completed. In return for Drillco’s funding of the well costs, Rex will assign to Drillco a working interest of 15% in the funded wells located in Moraine East and 65% in the funded wells located in Warrior North, together with the rights to real and personal property, permits, licenses, and other rights that are necessary or required to operate and produce oil, gas, and other hydrocarbons and all associated substances from the wellbores of such wells. Drillco will also have the option to participate in the next 36 wells within the joint development areas for a 65% working interest. In addition, Drillco will earn a 15% - 20% assignment in Moraine East and Warrior North for all acreage within each unit they participate in. Total consideration for the transaction is expected to be $175 million, with $37 million committed at closing for the first 22 wells. Once the first 15 wells within the joint development areas are flowing into sales, the company will receive reimbursement of approximately $20 million. Upon completion of the 58 well program, the company will have held by production/operations approximately 42,000 acres in Moraine East and approximately 10,400 acres in Warrior North. The Joint Development Agreement includes various provisions for adjustment to the parties’ respective working interests upon the occurrence of certain events to maintain the value (to each party) of the transaction, and also provides for rights to terminate the agreement upon the occurrence of certain events customary for transactions of this type. The parties have agreed to terms of joint operating agreements for each development area, which terms supplement the terms of the Joint Development Agreement. In addition, Rex and Drillco have made customary representations, warranties, covenants and agreements in the Joint Development Agreement.

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Recent Private Companies Transactions

Type
Date
Target
Merger/Acquisition
January 4, 2017
Oil and Gas Interests in Noble, Guernsey, and Belmont Counties, Ohio
 

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