All CATEGORIES
☰ Menu
Ohio Utica Shale

Rex Energy offers Appalachian Basin update, 2Q production

By Bob Downing Published: July 7, 2014

From Rex Energy today:

STATE COLLEGE, Pa., July 7, 2014 (GLOBE NEWSWIRE) -- Rex Energy Corporation (Nasdaq:REXX) today provided an update on both its Appalachian Basin operations as well as its second quarter 2014 production.

Butler Operated Area - Midstream

In June, the company placed five additional wells into sales once the necessary gathering infrastructure was in place. In total, the company has now placed 10 of the 11 wells previously completed and awaiting processing capacity into sales and expects to place the one remaining well into sales early in the third quarter of 2014. In addition, the company commenced ethane sales on June 11, 2014, which was a slight delay from the company's expected first ethane sales date. Since commencing ethane sales, the company has averaged approximately 1,000 bbls/d of ethane sales for the remainder of June. The company expects to sell between 2,000 and 3,000 bbls/d of ethane through mid-July until additional ethane recovery begins. Once the additional ethane recovery begins, the company expects its ethane sales to reach its ethane volume commitment of 5,000 bbls/d for the remainder of 2014.

Appalachian Basin - Butler Operated Area, Pennsylvania

In total, the company has placed 10 wells into sales during the second quarter in conjunction with the commissioning of the Bluestone II processing facility. Results from the ten wells have been consistent with the company's Butler Operated Area type curve, and have averaged approximately 48% liquids. Of particular note, the two-well Kennedy pad produced at an average initial 5-day sales rate per well of 6.5 MMcfe/d. Due to the high pressure of the recent wells placed into sales, production from a portion of the company's older low pressure wells has been constrained. The company's midstream partner is currently installing additional field compression and expects the additional field compression to be commissioned later this month.

Appalachian Basin - Warrior North Prospect, Carroll County, Ohio

In the Warrior North Prospect, the company has completed drilling and completion operations on the six-well Grunder pad and expects the wells to be placed into service in the third quarter of 2014. The six wells were drilled with an average lateral length of approximately 4,800 feet and completed with an average of 24 completion stages. In addition, the company tested 500 foot spacing between laterals on one of the six wells. The remaining wells were drilled with approximately 600 feet between the laterals.

The company has also finished drilling and completing the three-well Jenkins pad. The three wells were drilled with an average lateral length of approximately 5,350 feet and completed with an average of 33 completion stages. The wells are expected to be placed into sales in the third quarter of 2014 following their 60-day resting period.

Appalachian Basin - Warrior South Prospect, Guernsey, Noble & Belmont Counties, Ohio

In the Warrior South Prospect, the company is currently drilling the second well of the six-well J. Hall pad, located in Guernsey County, OH. The six-wells on the J. Hall pad are expected to be drilled with an average lateral length of approximately 5,400 feet and are testing approximately 650 foot spacing between the laterals on the pad. The six-well J. Hall pad is expected to be completed in the fourth quarter of 2014 and placed into sales near the end of 2014.

Second Quarter Production Update

As previously noted, the company's production has been constrained due to delays in the installation of additional field compression. The company expects production from its Butler Operated Area to return to expected levels once the field compression has been added.

The company estimates its second quarter 2014 production to be approximately 128 MMcfe/d. In addition, the company expects its second quarter 2014 natural gas price differentials, including the effects of natural gas basis differential hedges, to be approximately $0.50 -$0.70 below Henry Hub index prices. The company is reaffirming its full year 2014 production guidance of 143 MMcfe/d - 149 MMcfe/d.

About Rex Energy Corporation

Rex Energy is headquartered in State College, Pennsylvania and is an independent oil and gas exploration and production company operating in the Appalachian and Illinois Basins within the United States. The company's strategy is to pursue its higher potential exploration drilling prospects while acquiring oil and natural gas properties complementary to its portfolio.

Print
Add This

SUBSCRIBE VIA RSS

OHIO.COM VIDEOS

See the most recent drilling report and an injection wells map From NewsOutlet.org
Prev Next

Utica and Marcellus shale web sites

Ohio Department of Natural Resources' Division of Oil and Gas Resources Management State agency Web site.

ODNR Division of Oil and Gas Resources Management. State drilling permits. List is updated weekly.

ODNR Division of Geological Survey.

Ohio Environmental Protection Agency.

Ohio State University Extension.

Ohio Farm Bureau.

Ohio Oil and Gas Association, a Granville-based group that represents 1,500 Ohio energy-related companies.

Ohio Oil & Gas Energy Education Program.

Energy In Depth, a trade group.

Marcellus and Utica Shale Resource Center by Ohio law firm Bricker & Eckler.

Utica Shale, a compilation of Utica shale activities.

Landman Report Card, a site that looks at companies involved in gas and oil leases.FracFocus, a compilation of chemicals used in fracking individual wells as reported voluntarily by some drillers.

Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.

Rig Count Interactive Map by Baker Hughes, an energy services company.

Shale Sheet Fracking, a Youngstown Vindicator blog.

National Geographic's The Great Shale Rush.

The Ohio Environmental Council, a statewide eco-group based in Columbus.

Buckeye Forest Council.

Earthjustice, a national eco-group.

Stop Fracking Ohio.

People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.

Concerned Citizens of Medina County, a grass-roots group.

No Frack Ohio, a Columbus-based grass-roots group.

Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.

Penn State Marcellus Center.

Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.

Allegheny Front, environmental public radio for Western Pennsylvania.