Rex Energy Corporation (REXX) is an independent energy company engaged in the acquisition, production, exploration and development of oil and gas. The company’s properties are concentrated in the Appalachian, Illinois and Permian regions. Rex Energy pursues a balanced growth strategy of exploiting its sizeable inventory of lower risk developmental drilling locations, pursuing its higher potential exploration drilling prospects, and actively seeking to acquire complementary oil and natural gas properties.

Rex Energy announced that on May 5, 2008 the company closed the public offering of an aggregate 9.775 million shares of common stock. Four and a half million (4.5M) shares were offered and certain selling stockholders were offered 4.0M shares at $20.75 per share. Additionally, the underwriters exercised in full an over-allotment option to purchase an additional 1.275M shares.

The net proceeds to the company from the underwritten public offering, after underwriting discounts and offering expenses, were approximately $112M. Rex Energy intends to use its net proceeds from this offering to fund, in part, its capital expenditure program for 2008, including its enhanced oil recovery project in the Lawrence Field in Lawrence County, Illinois, and its leasing and drilling activities in the Marcellus Shale, as well as for other corporate purposes. Pending those uses, Rex Energy intends to use a portion of its net proceeds to repay borrowings under its senior credit facility and invest in short-term, investment grade, interest-bearing securities.

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