Rex Energy 8-K Regulation FD Disclosure

CORPORATE

CORPORATE

PRESENTATION

PRESENTATION

JANUARY 2008

JANUARY 2008

CORPORATION

NASDAQ: REXX

Exhibit 99.1

2

Forward-Looking Statements

This

document

contains

forward-looking

statements.

All

statements

other

than

statements

of

historical

facts

included

in

this

document,

including

but

not

limited

to,

statements

regarding

our

future

financial

position,

business

strategy,

budgets,

projected

costs,

savings

and

plans

and

objectives

of

management

for

future

operations,

are

forward-looking

statements.

Forward-looking

statements

generally

can

be

identified

by

the

use

of

forward-looking

terminology

such

as

“may,”

“will,”

“expect,”

“intend,”

“estimate,”

“anticipate,”

“believe”

or

“continue”

or

the

negative

thereof

or

variations

thereon

or

similar

terminology.

These

forward-looking

statements

are

subject

to

numerous

assumptions,

risks

and

uncertainties.

Factors

which

may

cause

our

actual

results,

performance

or

achievements

to

be

materially

different

from

any

future

results,

performance

or

achievements

expressed

or

implied

by

us

in

those

statements

include,

among

others,

(i)

the

quality

of

our

properties

with

regard

to,

among

other

things,

the

existence

of

reserves

in

economic

quantities,

(ii)

uncertainties

about

the

estimates

of

reserves,

(iii)

our

ability

to

increase

our

production

and

oil

and

natural

gas

income

through

exploration

and

development,

(iv)

our

ability

to

successfully

apply

horizontal

drilling

techniques

and

tertiary

recovery

methods,

(v)

the

number

of

well

locations

to

be

drilled

and

the

time

frame

within

which

they

will

be

drilled,

(vi)

the

timing

and

extent

of

changes

in

commodity

prices

for

crude

oil

and

natural

gas,

(vii)

domestic

demand

for

oil

and

natural

gas,

(viii)

drilling

and

operating

risks,

(ix)

the

availability

of

equipment,

such

as

drilling

rigs

and

transportation

pipelines,

(x)

changes

in

our

drilling

plans

and

related

budgets,

and

(xi)

adequacy

of

our

capital

resources

and

liquidity

including,

but

not

limited

to,

access

to

additional

borrowing

capacity.

Because

such

statements

are

subject

to

risks

and

uncertainties,

actual

results

may

differ

materially

from

those

expressed

or

implied

by

the

forward-looking

statements.

You

are

cautioned

not

to

place

undue

reliance

on

such

statements,

which

speak

only

as

of

the

date

of

this

document.

Unless

otherwise

required

by

law,

we

undertake

no

obligation

to

publicly

update

or

revise

any

forward-looking

statements,

whether

as

a

result

of

new

information,

future

events

or

otherwise.

3

REX ENERGY CORPORATION KEY STATISTICS

REX ENERGY CORPORATION KEY STATISTICS

Listing

Listing

NASDAQ: REXX

NASDAQ: REXX

Shares Outstanding

Shares Outstanding

4

4

30.8 million

30.8 million

Market Cap

Market Cap¹

1

Approx. $344 million

Approx. $344 million

Debt to Market Cap Ratio

Debt to Market Cap Ratio

4

4

Approx. 7%

Approx. 7%

Proved Reserves

Proved Reserves²

2

14.5 MMBOE

14.5 MMBOE

% Oil

% Oil

81%

81%

% Proved Developed

% Proved Developed

77%

77%

Current Net Daily Production

Current Net Daily Production

4

4

Approx. 2,800 BOEPD

Approx. 2,800 BOEPD

Total Acreage

Total Acreage

409,000 gross (180,000 net)

409,000 gross (180,000 net)

Total Potential Reserves

Total Potential Reserves³

3

179 MMBOE

179 MMBOE

1.

Based

on

closing

price

on

January

4

th

of

$11.17

and

30,794,702

shares

outstanding.

2.

Prepared

by

Netherland,

Sewell

&

Associates,

Inc.

as

of

December

31,

2007.

3.

Includes

14.5

MMBOE

of

proven

reserves

as

of

December

31,

2007

and

164

MMBOE

in

unrisked

non-proven

reserves

4.

As

of

September

20,

2007.

4

BUILT IN FUTURE GROWTH WITH STABLE FOUNDATION

BUILT IN FUTURE GROWTH WITH STABLE FOUNDATION

179 Mmboe Net

179 Mmboe Net

Un-risked Potential

Un-risked Potential1

1

~84 Million BOE

~84 Million BOE

84 Million BOE

1, 2

~72

~72

Million BOE

Million BOE

1, 2

~9 Million BOE

~9 Million BOE

9 Million BOE

1, 2

~14.5 Million BOE

~14.5 Million BOE

14.5 Million BOE

2,3

1.

Net Unrisked  Non-Proven Reserves. 

2.

Natural Gas converted to Barrels of Oil Equivalent using a 6:1 ratio

3.

Prepared by Netherland Sewell & Associates as of December 31, 2007

5

Revenue Growth

Production Growth

EBITDAX Growth

Proved Reserves Growth

1.

Revenue excluding unrealized gains or losses from hedges 

2.

Compound Annual Growth Rate

HISTORICAL HIGHLIGHTS

HISTORICAL HIGHLIGHTS

$0

$10

$20

$30

$40

$50

Millions

2004

2005

2006

YTD

SE9-07

CAGR

2

= 69%

1

CAGR

2

= 80%

CAGR

2

= 43%

CAGR

2

= 88%

6

Significant Reserve Base with Stable Production

–

14.5 MMboe

of proved reserves, with “long-life”

production, in Illinois Basin, Appalachia and Southwestern region

–

Leading oil producer in Illinois Basin

(provides premium pricing, unique local knowledge, advantaged consolidator position)

Significant Production and Reserve Growth Opportunities from Broad Project Inventory

–

Lawrence Field ASP enhanced  oil recovery project in Illinois

–

Marcellus Shale acreage position of over 70,000 gross acres in Pennsylvania. 

–

New Albany Shale acreage position of over 270,000 gross acres in

southern Indiana

–

Conventional

oil

drilling

opportunities

in

the

Illinois

Basin,

including

500

proven

undeveloped

and

proven

developed

non-producing locations in Illinois & Indiana

–

Active oil and gas exploration and development projects in the Permian Basin

Financial Flexibility to Support Growth

–

Approximately 7% debt to market capitalization ratio

–

Cash flows able to fund significant portion of planned capital expenditures

–

$200 million credit facility with $75 million initial borrowing base

Experienced Management Team with Proven Track Record Creating Value for Investors

–

Management team has built high-quality asset base through acquisitions and development, creating significant value

for investors

–

Technical team of geologists and engineers average over 20 years

of experience

–

17 acquisitions completed to date by the management team at average cost of $6.99 per proved BOE

Management and Board Aligned with Stockholders

–

Directors, officers and their affiliates own over 50% of the shares outstanding

KEY VALUE DRIVERS

KEY VALUE DRIVERS

7

The largest oil producer in the Illinois Basin with gross

daily production of approximately 2,800 barrels per day

Wells produce 30 to 50 years

Drilling success rates of greater than 99% in shallow

zones

ASP Flood project in Lawrence Field

–

Total net potential reserves of 84 MMBOE

Over 270,000 gross acres (89,000 net) in southern

Indiana, being developed for the New Albany Shale

Several ongoing shallow oil developmental drilling

projects with over 500 PUD & PDNP locations with

multiple non-proved offset locations

Avg. Well Depth: 1,500 feet

Avg. Well Cost: $120,000

Avg. Net Reserves per Well: 12,000 Bbls

Avg. Finding & Development Costs: $10.00 per

Bbls

ILLINOIS BASIN OPERATIONS

ILLINOIS BASIN OPERATIONS

Proved Reserves

12/31/06 Proved

Reserves:

10.8 MMBbls

3

rd

Quarter 2007 Average

Daily Net Production:

2,117 Bbls

Reserve Life:

18 yrs.

% Crude Oil:

100%

8

Implementing an ASP Flood project in the

Cypress and Bridgeport Sandstone

reservoirs of the Lawrence Field acreage

–

Own and operate 21.2 square miles

(approximately 13,500 net acres),

accounting for approximately 85% of the

current total gross production from this

field

–

Estimated original oil in place of 1 billion

barrels with approximately 400 million

barrels of oil produced to date

–

The Cypress (Mississippian) and the

Bridgeport (Pennsylvanian) sandstones

are the major producing horizons in the

field

–

Two successful surfactant-polymer pilot

tests in the field to date (one each in the

Cypress and Bridgeport Zones)

ASP Flood is an Enhanced Oil Recovery

(“EOR”) project

LAWRENCE FIELD ENHANCED OIL RECOVERY PROJECT

LAWRENCE FIELD ENHANCED OIL RECOVERY PROJECT

Typical Field Recovery, % of Original Oil in Place¹

1.

Typical primary and secondary recovery of OOIP from the Bridgeport and Cypress formations as estimated by the US DOE, with tertiary

recovery based on EOR project results in the Lawrence Field.

Remaining

Unrecoverable

Oil (with

current

technologies)

Primary

Recovery

10%-20%

Secondary

Recovery

20%-30%

EOR/Tertiary Recovery

15%-30%

9

ASP technology uses similar

mechanisms to mobilize bypassed

residual oil as previous surfactant

polymer floods conducted in the

1960s, 70s and 80s but at

significantly lower costs

The process has been applied in

numerous fields around the world

resulting in significant incremental

recoveries of oil  

Chemicals used in the ASP flood

are:

–

An alkali (NaOH or Na2CO3),

–

A surfactant, and

–

A polymer (Polyacrylamide)

THE ALKALI-SURFACTANT-POLYMER (“ASP”)

THE ALKALI-SURFACTANT-POLYMER (“ASP”)

PROCESS

PROCESS

10

ILLINOIS BASIN SURFACTANT POLYMER FLOODS

ILLINOIS BASIN SURFACTANT POLYMER FLOODS

During the 1960s through the 1980s Marathon, Texaco, Exxon and Shell developed a number of

surfactant-polymer

projects

in

the

Illinois

Basin;

Marathon,

using

their

patented

Maraflood©

process,

developed most of these projects

Most

of

the

projects

demonstrated

technical

success

by

producing

incremental

oil

of

15-25%

of

original

oil in place, however, the chemical cost per incremental barrel of oil ranged from $10-$25 due to the

high quantity of surfactant used at a time when oil prices were low 

In the 1980’s Marathon conducted a 25-acre, micellar

polymer project on our Robins lease within the

13,500 acres of the Lawrence Field now owned by Rex Energy Corporation.

Lawrence Field Robbins  Lease Maraflood©

Surfactant Polymer Flood Project

After many years of

waterflooding, production on

the lease had declined to 7

BOPD and with a 99%

watercut

During the six year period of

the surfactant polymer

injection, the production rose

to 370 BOPD and the oil cut

increased from 1% to 21%

The project produced an

estimated 459,000

incremental barrels from

25 acres within the

13,500 acres of the

Lawrence Field owned

by Rex Energy.

11

Over 270,000 gross (89,000 net) acres

Over 800 potential gross locations based on 320

acre spacing

Natural fractures believed to provide effective

reservoir permeability

Gas stored as free gas in fractures and adsorbed

gas on kerogen

and clay surfaces

Interest in the potential of the New Albany Shale

has increased recently with application of horizontal

well techniques

Participated in 13 wells to date

Gross well costs of approximately $800K

Targeting

reserves

of

1.1

Bcf

per

well

Continuing to refine drilling, stimulation &

completion techniques

NEW ALBANY SHALE PROJECT SUMMARY

NEW ALBANY SHALE PROJECT SUMMARY

1

2

3

4

5

6

7

Counties with Rex Energy New Albany Shale Acreage

9

3

1.

Rex/Aurora Pilot (Knox County)

2.

Rex/Aurora Pilot (Greene County)

3.

El Paso/Pogo Pilot (Davies & Martin Counties)

4.

Diversified Operating Pilot (Pike County)

5.

Rex/El Paso/Aurora Bogard

Well (Greene County)

6.

Quicksilver NAS Field Area (Harrison County)

7.

Noble Energy Pilots (Sullivan County)

8.

Pioneer Oil Company (Owen County)

Project Map

12

APPALACHIAN OPERATIONS

APPALACHIAN OPERATIONS

544 gross producing natural gas wells with

net average daily production of

approximately 1.9 MMcf

Wells produce 30 to 50 years

Drilling success rates of greater than 98% in

shallow zones

Premium pricing of $0.10-$0.65 per MMbtu

Low costs of operation

The Basin remains largely unexplored for

reserves below 6,000 feet; Shallow wells

(3,000-5,000 feet deep) typically drilled on

40 acre spacing

Two active developmental drilling projects

with 150-250 drilling locations as of 2

nd

quarter 2007

Gross Well Costs Approx: $220K

Gross Well Reserves: 130-200 MMcf

Westmoreland Field

•

100% WI in 73 producing wells

and infrastructure

•

125-150 additional locations

targeting Upper Devonian

Sands on 2,100 undeveloped

acres

•

100% success rate on 30 wells

drilled since 2004

Fayette Field

•

16% avg. WI in 122 producing wells

•

JV with Range Resources

•

30-100 drilling locations on 12,900

(3,000 net) undeveloped acres

•

Target –

Berea, Fifth, Warren and

Speechley

Bradford Sands

•

96% success rate on 24 wells drilled

in 2006

Proved Reserves

12/31/06 Proved Reserves:

10.2 Bcf

3rd

Quarter 2007 Average Daily

Production:

2.0 MMcf

Reserve Life:

25 yrs.

% Natural Gas:

100%

13

Rex Energy owns approx. 70,000 gross (46,000 net) acres in Western Pennsylvania where active

exploration for the Devonian (Marcellus) Shale is ongoing

The Marcellus Shale is a black, organic rich shale formation located at depths between 7,000 and

8,500 feet and ranges in thickness from 50 to 250 feet

Majority Rex Energy’s current acreage held by production with infrastructure in place

Currently leasing additional acreage

Leased additional 13,000 net acres in last 90 days

Plan to lease additional 30,000-50,000 gross acres in 2008

Vertical Well Potential:

Gross Well Costs: $800-$900K

Gross

Well

Reserves:

0.6

–

1

Bcf

300 –

1,000 potential drilling locations

Plan to spud first vertical well test in Q1 2008

Horizontal Well Potential:

Reported

production

rates

from

horizontal

test

wells

of

1.4

–

4.7

Mmcf

per

day 

MARCELLUS SHALE PROJECTS SUMMARY

MARCELLUS SHALE PROJECTS SUMMARY

14

REX ENERGY APPALACHIAN ACREAGE

REX ENERGY APPALACHIAN ACREAGE

Rex Energy Acreage Counties

Current Areas of Marcellus Exploration

50

100

150

200

250

Project Map

Marcellus Shale

Marcellus Isopach

(feet)

15

•

East Carlsbad Field

•

Several workover

opportunities

•

Cisco/Wolfcamp

Increased density drilling

•

541 MBOE Net Unriisked

Reserve Potential

•

Azalea Field

•

Waterflood

Installation Project

•

Downspacing

•

586 MBOE Net Unrisked

Reserve Potential

•

Preist-Beavers Project

•

Queen Sand drilling project

•

10 well  potential well locations

•

502 MBOE Net Unrisked

Reserve Potential

•

Allison Field

•

Fussleman

recompletion

opportunity

•

Leonard & Connell Drilling Opportunities

•

220 MBOE Net Unrisked

Reserve Potential

•

Dare I Cook & Hope Fields

•

Waterflood

redevelopment project

•

Hope Sand Drilling Potential

•

1 MMBOE Net Unrisked

Drilling Potential

SOUTHWEST REGION OPERATIONS

SOUTHWEST REGION OPERATIONS

Bison Project

Pecan Station Project

East Carlsbad Field

Azalea Field

N. Crows Nest Project

Preist-Beavers Project

Allison Field

New Batson Field

Dare I Cook & Hope Fields

Proved Reserves

12/31/06 Proved Reserves:

11.7 Bcfe

3

rd

Quarter 2007 Average Daily

Production:

380 BOE

Reserve Life:

21 yrs.

% Natural Gas:

58%

16

BUILT-IN FUTURE GROWTH

BUILT-IN FUTURE GROWTH

Project

Net Acreage

Net Un-Risked

Reserve

(1)

Potential

Activity

Lawrence Field ASP

Project

13,500 acres

84 MMBOE

Pilot wells drilled; injection in pilot

tests

to

begin

2

nd

quarter

2008.

New Albany Shale

89,000 acres

240 Bcf

(40 MMBOE)

13 Wells drilled to date;

Developing stimulation

techniques;

Marcellus (Devonian)

Shale

45,500 acres

192 Bcf

(32 MMBOE)

Leasing;  Plan to begin testing in 

Q1-08

Appalachian Basin

Shallow Conventional

Drilling

34,000 acres

17 Bcf

(3 MMBOE)

30-35 wells planned in 2008

Permian Basin Projects

8,600 acres

15 Bcfe

(3 MMBOE)

20-30 wells planned in 2008

Illinois Shallow Oil

Drilling

30,000 acres

3 MMBOE

40-50 wells planned in 2008

Total

214,100 acres

165 MMBOE

1.

Net Un-Risked Reserve Potential does not represent proven reserves

17

PLANNED 2007 & 2008 CAPITAL EXPENDITURES

PLANNED 2007 & 2008 CAPITAL EXPENDITURES

1.

Represents acquisitions & leasing year to date. We do not attempt to budget for future acquisitions.

Approximately $40 million in expected 2007 capital expenditures

Plan to increase capital expenditures by 95% in 2008 to approximately $78 million

Accelerating investment in ASP Project, Marcellus Shale drilling

& developmental drilling projects in

each of our operating regions

18

Significant Reserve Base with Stable Production

–

14.5 MMboe

of proved reserves, with “long-life”

production, in Illinois Basin, Appalachia and Southwestern region

–

Leading oil producer in Illinois Basin

(provides premium pricing, unique local knowledge, advantaged consolidator position)

Significant Production and Reserve Growth Opportunities from Broad Project Inventory

–

Lawrence Field ASP enhanced  oil recovery project in Illinois

–

Marcellus Shale acreage position of over 70,000 gross acres in Pennsylvania. 

–

New Albany Shale acreage position of over 270,000 gross acres in

southern Indiana

–

Conventional

oil

drilling

opportunities

in

the

Illinois

Basin,

including

500

proven

undeveloped

and

proven

developed

non-producing locations in Illinois & Indiana

–

Active oil and gas exploration and development projects in the Permian Basin

Financial Flexibility to Support Growth

–

Approximately 7% debt to market capitalization ratio

–

Cash flows able to fund significant portion of planned capital expenditures

–

$200 million credit facility with $75 million initial borrowing base

Experienced Management Team with Proven Track Record Creating Value for Investors

–

Management team has built high-quality asset base through acquisitions and development, creating significant value

for investors

–

Technical

team

of

geologists

and

engineers

average

over

20

years

of

experience

–

17 acquisitions completed to date by the management team at average cost of $6.99 per proved BOE

Management and Board Aligned with Stockholders

–

Directors, officers and their affiliates own over 50% of the shares outstanding

KEY VALUE DRIVERS

KEY VALUE DRIVERS

CORPORATION

NASDAQ: REXX

www.REXENERGY.com