From Rex Energy today:
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
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.
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.
In the Warrior South Prospect, the company is currently drilling the second well of the six-well J. Hall pad, located in
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
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