Rex Energy Corp. (NASDAQ: REXX) closed the sale of its Illinois Basin assets marking its exit from the oily basin, the company said Aug. 22.
The company said in June it had agreed to sell the assets to Campbell Development Group LLC for about $40 million with up to $10 million more in proceeds depending on the value of commodity prices.
The sale included about 76,000 net acres in Illinois, Indiana and Kentucky with about 1,700 net barrels per day of current production. The departure puts State College, Pa.-based Rex Energy on track to become a pure play Appalachia producer, where its drilling has been focused so far in 2016.
Proceeds from the sale will be used to pay down the revolving line of credit and for general corporate purposes. After closing the deal, the company expects to maintain a $190 million borrowing base.
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