© 2015 The Texas Lawbook.
By Natalie Posgate
(March 3) – Pennsylvania-based Rex Energy said earlier this week that it will join forces with New York investment firm Benefit Street Partners to develop 48 wells in Rex Energy’s Moraine East and Warrior North operated areas.
A team of Houston-based lawyers from Sidley Austin led by energy partner Joe Flack, III are handling the transaction for BSP. Flack received assistance from partners Duston McFaul (corporate reorganization/bankruptcy), Jim Rice (energy) and Herschel Hamner III (energy/finance), as well as M&A and tax matters from associates Tommer Yoked, Omair Khan and Alden Paras.
It is unknown at the time who Rex’s counsel is for the deal.
Under the JV agreement, BSP has committed to fund 15 percent of the first 16 wells in Moraine East and 65 percent of six wells in Warrior North. The firm will also have the option to participate in the next 36 wells within the joint development area for a 65 percent working interest.
For Rex, the partnership allows the company to complete an additional 15 wells in 2016 while lowering its net operational guidance to a range of $30 million to $40 million.
© 2014 The Texas Lawbook. Content of The Texas Lawbook is controlled and protected by specific licensing agreements with our subscribers and under federal copyright laws. Any distribution of this content without the consent of The Texas Lawbook is prohibited.
If you see any inaccuracy in any article in The Texas Lawbook, please contact us. Our goal is content that is 100% true and accurate. Thank you.