STATE COLLEGE — Rex Energy has entered into an agreement with an affiliate of ArcLight Capital Partners to jointly develop 32 wells in the company’s Butler operating area.

ArcLight will participate and fund 35 percent of the costs of the designated wells.

The Butler operating area mostly is in Butler County, mainly in the southwestern part of the county, but also includes small portions of Beaver and Lawrence counties.

The joint venture agreement is expected to reduce Rex’s 2015 capital expenditures by $60 million to about $140 million, a decrease of 30 percent.

In addition, ArcLight will have the option to participate as a 20 percent interest partner in 17 additional Moraine East wells in 2016.

The Moraine East area includes parts of Butler, Armstrong, Beaver, Lawrence, Mercer and Venango counties. In Butler, that land is mainly in the northwestern part of the county.

Rex has 120 wells active in the county with about 272,000 acres leased.