STATE COLLEGE, Pa., July 9, 2013 (GLOBE NEWSWIRE) -- Rex Energy Corporation (Nasdaq:REXX) today announced 5-day sales rates from its first three Warrior South Prospect wells in the Ohio Utica.
The Noble 1H, located in Noble County, Ohio, was placed into sales from its resting period at a five-day sales rate (excluding downtime) of 1,783 Boe/d (43% NGLs, 44% gas, 13% condensate), assuming full ethane recovery and a natural gas shrink of 20%. The well produced with an average casing pressure of 2,635 psi during the five-day sales period on a 20/64 inch choke. The well was drilled to a total measure depth of approximately 11,740 feet with a lateral length of approximately 3,378 feet and was completed in 21 stages. Based on composition analysis, the gas being produced is approximately 1,231 BTU.
The Guernsey 2H, located in Noble County, Ohio, was placed into sales from its resting period at a five-day sales rate (excluding downtime) of 1,764 Boe/d (44% NGLs, 42% gas, 14% condensate), assuming full ethane recovery and a natural gas shrink of 20%. The well produced with an average casing pressure of 2,451 psi during the five-day sales period on a 20/64 inch choke. The well was drilled to a total measured depth of 12,097 feet with a lateral length of approximately 3,640 feet and was completed in 23 stages. Based on composition analysis, the gas being produced is approximately 1,265 BTU.
The Guernsey 1H, located in Noble County, Ohio, was placed into sales from its resting period at a five-day sales rate (excluding downtime) of 1,646 Boe/d (44% NGLs, 42% gas, 14% condensate), assuming full ethane recovery and a natural gas shrink of 20%. The well produced with an average casing pressure of 2,582 psi during the five-day sales period on a 20/64 inch choke. The well was drilled to a total measured depth of 11,963 feet with a lateral length of approximately 3,587 feet and was completed in 23 stages. Based on composition analysis, the gas being produced is approximately 1,265 BTU.
|Warrior South Well Results – 5-Day Sales Rates|
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Tom Stabley, Rex Energy's Chief Executive Officer commented, "The strong initial sales rates of our first three Warrior South wells demonstrate the prospects for Rex's approximately 7,000 gross acres. Given these impressive initial sales rates, we expect the Warrior South Prospect to have a meaningful impact on Rex's current and future production growth."
The company is currently drilling the fifth well of the five-well J. Anderson pad in the Warrior South Prospect. The five wells on the J. Anderson pad are expected to be drilled with an average lateral length of approximately 4,250 feet and to be placed into sales in late 2013. Following completion of drilling operations, the rig will move back to the Warrior North Prospect for the remainder of 2013.
Second Quarter Earnings Release and Conference Call
Rex Energy plans to release its second quarter 2013 operational and financial results on Tuesday, August 6, 2013 after market close. Management will host a live conference call and webcast on Wednesday, August 7, 2013 at 10 a.m. ET to review second quarter results and operational highlights. Reference materials for the conference call and webcast will be posted to the company's website prior to the call. All financial results included in the second quarter earnings release and discussed on the conference call and webcast will remain subject to our independent auditor's review. The telephone number to access the conference call is (866) 437-1772. The conference call will be available for replay through the company's website at www.rexenergy.com under the Investor Relations tab. The replay of the event and reference materials will be available on the company's website through September 7, 2013.
Upcoming Conference Schedule
Management will present at the Credit Suisse Marcellus & Utica Shale Field Trip in Pittsburgh, Pennsylvania at the Omni William Penn Hotel on Wednesday, July 10, 2013. Webcast information for this event, if available, will be posted in the Investor Relations section of the Rex Energy website, www.rexenergy.com, under Events & Presentations. Webcasts will remain available for 30 days after the event.
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; Utica Shale development plans in the Warrior South Prospect; plans for releasing second quarter financial results and operational highlights; and upcoming conference, calls, and webcasts 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: Mark Aydin Manager, Investor Relations (814) 278-7249 firstname.lastname@example.org
Source:Rex Energy Corporation