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12 Best Energy Stocks to Buy Now

OptionsZone Experts, June 3, 2009 Free Trading Guides

Use volatility to your advantage for BIG profits

Energy Play #12: Rex Energy Corp. (REXX)

By Tobin Smith

Rex Energy Corp. (REXX) is an independent oil and gas company with 65,000 net acres in the Marcellus Shale gas formation in Pennsylvania, which has become the premier natural gas play in the Appalachian Basin. And REXX is devoting 70% of its exploration budget to this area in 2009.

REXX had its borrowing base of $80 million reaffirmed by its lending group, which is key. The banks investigated the company's reserves in the context of the future oil and gas prices, and kept their lending line intact. This says a lot about the company's prospects in a world where credit lines are being cut. New production was stopped because oil and gas prices fell to such low levels, but with energy prices on the rise, REXX is ready to start up the pumps and let it rip.

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