2010-06-09-2010-06-04-2010-06-04

Farmed into 20,000 net acres in Denver-Julesburg Basin in CO, WY.

Rex Energy Corp., State College, Pa., (Nasdaq: REXX) has farmed in to approximately 20,000 net acres, targeting Niobrara oil shale, in the Denver-Julesburg Basin from an undisclosed seller for approximately $4.3 million.

The properties are in Weld and Laramie counties in Colorado and Wyoming, respectively. Rex has approved $8 million for the drilling and completion of two horizontal Niobrara shale test wells, the first of which is expected to spud by late June or early July. Additionally, the company has tagged $34.7 million of its 2010 capex for select Marcellus and Niobrara shale leasing.

Rex president and chief executive Benjamin Hulburt says, "We began leasing in the DJ Basin for the Niobrara shale several months ago before the recent run up in acreage costs, which enabled us to acquire our acreage at an average cost of only $215 per net acre…Given the initial results of recent horizontal Niobrara shale oil wells in the basin within close proximity to our acreage, we are very pleased to be able to provide our investors with exposure to this exciting new exploration play at minimal cost."

Hulburt adds that the additional acreage could potentially keep the company's historical weighting toward oil production, currently 60% of total production.

KeyBanc Capital Markets Inc. analyst Jack Aydin believes the company's new Niobrara oil shale position "announced at an early cheap entry price tag," is positive. The analyst also notes that the Niobrara play will help "keep the company's oil to gas mix at more historical levels longer term."

Rex operates in the Illinois, Appalachian and Rockies regions. The company recently opened a new regional office in Denver to service the Rockies region.