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Rex Energy Says Warrior South Well Results 'Impressive'

Rex Energy Corp. said it has seen "impressive" results so far from its first three wells in the Warrior South prospect, an area in Ohio's portion of the Utica Shale.

The State College, PA-based company said its Noble #1H well was placed into sales from its resting period at a five-day sales rate, excluding downtime, of 1,783 boe/d [44% gas, 43% natural gas liquids (NGL) and 13% condensate], assuming full ethane recovery and a natural gas shrink of 20%.

Rex said the Noble #1H 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 about 11,740 feet, with a lateral length of approximately 3,378 feet, and was completed in 21 stages. Based on composition analysis, gas produced from the well is approximately 1,231 BTU.

A second well, Guernsey #2H, was placed into sales from its resting period at a five-day sales rate, excluding downtime, of 1,764 boe/d (44% NGL, 42% gas and 14% condensate), assuming full ethane recovery and a natural gas shrink of 20%. Average casing pressure was 2,451 psi for the five-day sales period on a 20/64 inch choke, with a total measured depth of 12,097 feet, a lateral length of about 3,640 feet, and completion in 23 stages. Composition analysis revealed the gas produced to be approximately 1,265 BTU.

Rex said a third well in the prospect, Guernsey #1H, was placed into sales from its resting period at a five-day sales rate, excluding downtime, of 1,646 boe/d (44% NGL, 42% gas and 14% condensate), assuming full ethane recovery and a natural gas shrink of 20%. Average casing pressure was 2,582 psi for the five-day sales period on a 20/64 inch choke, with a total measured depth of 11,963 feet, a lateral length of about 3,587 feet. Like the Guernsey #2H, the well was completed in 23 stages and produced 1,265 BTU gas, according to composition analysis.

All three wells were drilled in Noble County, OH.

"The strong initial sales rates of our first three Warrior South wells demonstrate the prospects for Rex's approximately 7,000 gross acres," Rex CEO Tom Stabley said Tuesday. "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."

Rex said it was currently drilling the fifth well on the five-well J. Anderson pad in the Warrior South prospect. The company said all five wells on the pad were expected to be drilled with an average lateral length of approximately 4,250 feet, and would be placed into sales in late 2013. After completion, Rex said the drilling rig would move back to the company's Warrior North prospect for the rest of 2013.

Last month, Rex said it was pleased with the initial results of a well targeting the Utica Shale in Carroll County, OH, but was disappointed with the performance of a third-party well completion technique at its wells elsewhere (see Shale Daily, June 24).

According to a corporate presentation from April 30, Rex's Warrior North prospect encompasses about 16,100 gross (15,900 net) acres in Carroll County. Meanwhile, in the Warrior South, it holds about 6,700 gross (4,100 net) acres in Ohio's Noble, Guernsey and Belmont counties.

Rex said it plans to release its operational and financial results for 2Q2013 on Aug. 6 after the markets close, and management will host a live conference call and webcast the next day at 10 a.m. EDT to review the company's results for the quarter and to make operational highlights.

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