STATE COLLEGE, Pa., Dec. 6, 2013 (GLOBE NEWSWIRE) -- Rex Energy Corporation (Nasdaq:REXX) today provided an update on its operations.
Appalachian Basin – Warrior South Prospect
The five-well J. Anderson pad, located in Guernsey County, Ohio, was placed into sales from its resting period at an average five-day sales rate per well (excluding downtime) of 1,886 Boe/d (40% NGLs, 40% gas, 20% condensate) assuming full ethane recovery and an average natural gas shrink of 12%. The five wells produced with an average casing pressure of 3,293 psi during the five-day sales period on an average 18/64 inch choke. The five-well pad was drilled to an average total measured depth of approximately 12,873 feet with an average lateral length of approximately 4,250 feet and was completed in an average of 28 stages, utilizing the company's 150' "Super Frac" design. Based on composition analysis, the gas being produced averaged 1,257 BTU.
|Five-Well J. Anderson Well Results – 5-Day Sales Rates|
| Natural |
| Condensate |
| NGLs |
| Total (Full |
| Percentage of |
| Total (Ethane |
|J. Anderson 1H||4,454||347||740||1,830||59%||1,426|
|J. Anderson 2H||4,597||434||770||1,971||61%||1,520|
|J. Anderson 3H||4,427||358||760||1,856||60%||1,438|
|J. Anderson 4H||4,414||368||750||1,853||60%||1,437|
|J. Anderson 5H||4,471||385||792||1,922||61%||1,489|
Tom Stabley, Rex Energy's Chief Executive Officer commented, "The strong pressure profiles and early production results of our five-well J. Anderson pad are very encouraging, especially given the limited choke size we are utilizing to produce the wells. We are also pleased that these wells, along with our first three Warrior South Prospect wells, are currently producing into sales without any midstream constraints. We feel the production results of the five J. Anderson wells further demonstrate the value of our acreage position in the Warrior South Prospect."
Appalachian Basin – Butler Operated Area
In the Butler Operated Area, the company has recently placed into sales four of the six wells on the Baillie Trust pad. The four wells placed into sales are the stacked laterals in the Marcellus and Upper Devonian formations, which consist of two Marcellus wells (Baillie Trust 2H and Baillie Trust 4H) and two Upper Devonian wells (Baillie Trust 5H and Baillie Trust 6H) offset above the laterals in the Marcellus. The average lateral length of these wells was 4,605 feet and they were completed with an average of 30 stages, utilizing the company's 150' "Super Frac" completion design. The production from these wells is expected to substantially fill the existing 90 MMcf/d of processing capacity at the Sarsen and Bluestone facilities. As previously announced, additional processing capacity is on schedule for completion in the second quarter of 2014 with the commissioning of the Bluestone II facility.
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.
Except for historical information, statements made in this release, including those relating to potential well performance; expected volumes; processing capacity; and timing of the Bluestone II complex and additional processing capacity are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may contain words such as "expected", "expects", "scheduled", "planned", "plans", "anticipates" and similar words. These statements are based on management's experience and perception of historical trends, current conditions, and anticipated future developments, as well as other factors believed to be appropriate. We believe these statements and the assumptions and estimates contained in this release are reasonable based on information that is currently available to us. However, management's assumptions and the company's future performance are subject to a wide range of business risks and uncertainties, both known and unknown, and we cannot assure that the company can or will meet the goals, expectations, and projections included in this release. Any number of factors could cause our actual results to be materially different from those expressed or implied in our forward looking statements, including (without limitation):
- economic conditions in the United States and globally;
- domestic and global demand for oil, NGLs and natural gas;
- volatility in oil, NGL, and natural gas pricing;
- new or changing government regulations, including those relating to environmental matters, permitting, or other aspects of our operations;
- the geologic quality of the company's properties with regard to, among other things, the existence of hydrocarbons in economic quantities;
- uncertainties inherent in the estimates of our oil and natural gas reserves;
- our ability to increase oil and natural gas production and income through exploration and development;
- drilling and operating risks;
- the success of our drilling techniques in both conventional and unconventional reservoirs;
- the success of the secondary and tertiary recovery methods we utilize or plan to employ in the future;
- the number of potential well locations to be drilled, the cost to drill them, and the time frame within which they will be drilled;
- the ability of contractors to timely and adequately perform their drilling, construction, well stimulation, completion and production services;
- the availability of equipment, such as drilling rigs, and infrastructure, such as transportation, pipelines, processing and midstream services;
- the effects of adverse weather or other natural disasters on our operations;
- competition in the oil and gas industry in general, and specifically in our areas of operations;
- changes in our drilling plans and related budgets;
- the success of prospect development and property acquisition;
- the success of our business and financial strategies, and hedging strategies;
- conditions in the domestic and global capital and credit markets and their effect on us;
- the adequacy and availability of capital resources, credit, and liquidity including, but not limited to, access to additional borrowing capacity; and
- uncertainties related to the legal and regulatory environment for our industry, and our own legal proceedings and their outcome.
The company undertakes no obligation to publicly update or revise any forward-looking statements. Further information on the company's risks and uncertainties is available in the company's filings with the Securities and Exchange Commission.
CONTACT: For more information, please contact: Mark Aydin Manager, Investor Relations (814) 278-7249 firstname.lastname@example.org
Source:Rex Energy Corporation