Texas – The global law firm of Thompson & Knight LLP has assisted Sumitomo Corporation (“Sumitomo”), through its subsidiary Summit Discovery Resources II, LLC, in a joint venture agreement with Rex Energy Corporation (“Rex Energy”) to participate in the development and production of Rex Energy’s Marcellus Shale assets.
Under the terms of the agreement, Rex Energy will sell and transfer interests in its Marcellus Shale assets, including 22,000 net acres, certain producing wells, and associated midstream assets, for approximately $88 million upon closing and an additional $106 million between the closing date and the end of December 2011. Sumitomo estimates the total cost of development for this project will reach $1.2 billion during the next 10 years.
Arthur J. Wright and Toshi Yoshida led the Thompson & Knight team of attorneys working on the transaction, which included Jennifer M. Avery and Debra J. Villarreal of the Firm’s Oil and Gas Practice Group; R. David Wheat and Todd D. Keator of the Firm’s Tax Practice Group; and James C. Morriss III, Matthew J. Knifton, and Christopher D. Smith of the Firm’s Environmental Law Practice Group. Additionally, David M. Bennett, William Prescott Mills Schwind, Mitchell E. Ayer, Ned Price Jr., Lucas A. LaVoy, and Gabriel Salinas provided assistance regarding due diligence and other matters.
Sumitomo is one of the world’s largest trading companies. The Japanese corporation sells a variety of domestic products and services, conducts import/export and trilateral business transactions, provides domestic and international business investment, and participates in other business ventures in a variety of industrial sectors around the world.
Headquartered in Pennsylvania, Rex Energy is an independent energy company engaged in the acquisition, production, exploration, and development of oil and gas, with properties concentrated in the Illinois, Appalachian, and Denver-Julesburg Basins.