Rex Energy Announces Initial Well Results in the Moraine East Area
Rex Energy Corporation (REXX) (“the company”) today announced initial production test results from the company’s first two wells in the Moraine East Area, the Renick 2H (Marcellus) and the Renick 3H (Upper Devonian Burkett).
As previously announced, the company finished completion operations on the four-well Renick pad, consisting of three Marcellus wells and one Upper Devonian Burkett well. The Renick 2H was drilled to a lateral length of approximately 6,000 feet and completed in 40 stages with sand concentrations of 2,300 pounds per foot. The Renick 2H produced at a 24-hour test rate, assuming full ethane recovery, of approximately 6.6 MMcfe/d, consisting of 3.0 MMcf/d of natural gas, 566 bbls/d of NGLs and 47 bbls/d of condensate. At the time the Renick 2H was shut in, the well was still cleaning up and continuing to experience an increase in the production rate. Based on composition analysis, the gas being produced is approximately 1,309 BTU.
The Renick 3H was drilled to a lateral length of approximately 5,700 feet and completed in 38 stages with sand concentrations of 2,300 pounds per foot. The Renick 3H produced at a 24-hour rate, assuming full ethane recovery, of approximately 8.2 MMcfe/d, consisting of 3.5 MMcfe/d of natural gas, 675 bbls/d of NGLs and 101 bbls/d of condensate. Of particular note is the increased condensate production from the Renick 3H, which represents the highest condensate production rate to date in the Butler Operated Area. Based on composition analysis, the gas being produced is approximately 1,302 BTU.
The four-well Renick pad is expected to be placed into sales at the end of 2015 in conjunction with MarkWest Energy Partners, L.P. (MWE) commissioning the Bluestone III processing facility and the completion of the Moraine East gathering system. The company does not plan to test the remaining two wells on the Renick pad.
“I am extremely pleased with the initial results of our first two Moraine East wells,” said Tom Stabley, Rex Energy’s Chief Executive Officer. “The initial test results mark a significant milestone in our development of the Moraine East Area, demonstrating the value of the prospect, and further supporting our belief that it is analogous to the legacy Butler Operated Area. We are particularly pleased with the increased liquids production from these wells, and anticipate that our increased sand concentration and completion design will continue to yield increased IPs and EURs going forward.”
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.
This press release includes “forward-looking statements” within the meaning of federal securities laws. All statements, other than statements of historical facts, included in this release that address activities, event, developments, forecasts, or guidance that Rex Energy expects, believes or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside Rex Energy’s ability to control or predict, that could cause results to differ materially from management’s current expectations. These risks and uncertainties include, but are not limited to, economic and market conditions, operational considerations, the timing and success of our exploration and development efforts and other uncertainties. Additional information concerning these and other factors can be found in our press releases and public periodic filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2014, and we strongly encourage you to review those documents to understand these risks. You should not place undue reliance on forward-looking statements because they reflect management’s views only as of the date of this release. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.