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New Wells Put Rex Energy on Track to Meet Production Guidance

Rex Energy Corp. turned 12 wells to sales during the third quarter in western Pennsylvania that put it on target to meet quarterly and full-year guidance after production snags hampered volumes in 2Q2017.

The six-well Shields pad, consisting of five Marcellus Shale wells and an Upper Devonian Burkett Shale well, has produced at an average 30-day sales rate/well of 7.9 MMcfe/d. The volumes consist of 3.6 MMcf/d natural gas, 676 b/d natural gas liquids (NGL) and 38 b/d condensate. The wells were drilled to an average lateral length of 8,800 feet and were completed with an average of 49 stages.

The company also placed the four-well Mackrell pad, which targets the Marcellus, to sales, with average output of 8.4 MMcfe/d each, or 3.9 MMcf/d gas, 723 b/d NGLs and 25 b/d condensate. The two-well Frye pad was also placed to sales, with an update on performance expected in the coming weeks.

The Shields, Mackrell and Frye pads have the company on track to meet its third quarter guidance of 171-181 MMcfe/d and exit the year in the forecast range of 180-190 MMcfe/d, Rex said.

The wells were drilled and completed in the Moraine East area, which was acquired in a broader 2014 deal with an affiliate of Royal Dutch Shell plc. The area sits to the north of core acreage in Butler County, and Rex has been working since last year to hold acreage with production. Management said in August the 12 wells that recently came online are the last of its efforts to delineate the field.

Unplanned midstream maintenance and a compressor that was late to come online in the Moraine East during the second quarter curtailed production. Rex said late Monday with the Frye pad flowing to sales, it expects to reach its 90 MMcf/d of compression capacity in the field by the end of the month. More compression is to be brought online early next year.

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