A report in June, 2009 found Rex teaming up with The Williams Cos. to develop roughly 44,000 acres of the former's Marcellus shale leases in Pennsylvania's Centre, Clearfield and Westmoreland counties. Williams planned to invest $33 million in the venture in exchange for a 50% share of Rex's working interest in the leases. The companies termed their agreement a "drill-to-earn" structure. Under the agreement, Williams was to be well operator and bear 90% of the drilling expense up $33 million on behalf of Rex, or $41 million of its own expenses, in order to earn a 50% share. In other words, because of the carry, Rex was only required to pay 10% of the cost to drill and complete the wells, yet it owned a 50% interest under the agreement. Willimas had up until the end of 2011 to complete its investment.
,,,but the whole article is interesting.
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