Rex Energy Corp. said this week that a four-well pad it recently placed to sales in western Pennsylvania produced the highest condensate rates it's recorded in the region.
Wells on the Baird 4-H in the company's Moraine East area produced at an average 24-hour rate of 10.1 MMcfe/d, assuming full ethane recovery, consisting of 4.4 MMcf/d of natural gas, 823 b/d of natural gas liquids and 124 b/d of condensate.
The pad's two Marcellus wells averaged over 12 MMcfe/d of production. The other two wells were drilled to the Upper Devonian Shale. The Baird wells were drilled to an average lateral length of 7,140 feet and completed in an average of 39 stages and 2,727 pounds of sand per lateral foot.
Rex acquired its Moraine East assets in a larger 2014 deal with an affiliate of Royal Dutch Shell plc for $120 million. The properties sit to the north of Rex's core legacy acreage in Butler County. The company has been working to develop them since.
"The strong performance of the Baird wells, which are located in the northernmost part of Moraine East, demonstrates the future potential for the northern portion of the field," CEO Tom Stabley said. "The placement of the Baird pad into sales marks another success in the execution of our two-year plan."
After it closed on a new $300 million borrowing base in May, Rex updated its two year outlook, which was first released earlier this year. The plan calls for increases in earnings and production. The company is now guiding for 194-204 MMcfe/d in 2017 and 255-265 MMcfe/d in 2018. Rex produced 195.3 MMcfe/d last year.
Stabley said the company remains on track to place the six-well Shields and four-well Mackrell pads in the Moraine East to sales later this year. It is also on schedule to turn-in-line the four-well Wilson pad in its legacy Butler Operated area during the same time. He added that those wells would help increase production in the second half of 2017.