Rex Energy OH Utica Wells go Toe-to-Toe with Gulfport Wells

toe 2 toe So far, we’ve had precious little in the way of well production numbers from the Ohio Utica Shale. The numbers we have had are encouraging. On Monday, Rex Energy released well production numbers for their “Warrior South Prospect” wells in the Ohio Utica, and the numbers look very good indeed. From two wells in Guernsey County and one in Noble County, Rex is reporting an average daily production of around 8 million cubic feet of natural gas, 500 barrels of condensate (natural gasoline), and 1,200 barrels of natural gas liquids (mostly ethane), per day for each well.

Below are the details from Rex, along with an embedded copy of their company presentation just updated (March 2013) which shows many more details, including maps and a very interesting table (on page 18) that compares Rex’s three Ohio wells with other drillers’ wells, including Ohio’s largest producing wells drilled by Gulfport. When converted to BTUs produced—which takes into account not only methane, but also gas liquids, condensate and oil—the Rex wells are among the best producing wells in the state…

Rex Energy Corporation today announced initial results from its first three Warrior South Prospect wells in the Ohio Utica.

The Guernsey 2H, located in Noble County, Ohio, tested at a peak 24-hour rate of 3,111 Boe/d (39% NGLs, 43% gas, 18% condensate), assuming full ethane recovery and a natural gas shrink of 20%. The well produced with an average casing pressure of 2,229 psi during the initial 24-hour test period on a 30/64 inch choke. The well was drilled to a total measured depth of approximately 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 1,207 BTU.

The Guernsey 1H, located in Noble County, Ohio, tested at a peak 24-hour rate of 2,968 Boe/d (39% NGLs, 43% gas, 18% condensate), assuming full ethane recovery and a natural gas shrink of 20%. The well produced with an average casing pressure of 2,682 psi during the initial 24-hour test period on a 24/64 inch choke. The well was drilled to a total measured depth of approximately 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 1,216 BTU.

The Noble 1H, located in Noble County, Ohio, tested at a peak 24-hour rate of 2,938 Boe/d (41% NGLs, 45% gas, 14% condensate), assuming full ethane recovery and a natural gas shrink of 20%. The well produced with an average casing pressure of 2,562 psi during the initial 24-hour test period on a 24/64 inch choke. The well was drilled to a total measured 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 1,216 BTU.

Rex Energy Warrior South Well Results

"We are very excited about the test results of our first three Warrior South wells," commented Tom Stabley, Rex Energy’s Chief Executive Officer. "We believe our test results, combined with other reported industry results, demonstrate the opportunity for superior well performance in this region. These results and our 2013 development plans will help us to demonstrate the potential value of our Warrior South position, where we have identified approximately 45 additional gross well locations."

The wells have been shut-in since completion and will be placed into sales once the related infrastructure is in place, which is currently expected to be in June 2013. Rex Energy plans to provide a 5-day and 30-day sales rate for the three wells as part of its second quarter 2013 earnings release. During the second and third quarter of 2013, the company plans to drill and complete 5 additional wells at its J. Anderson well pad with a proposed average lateral length per well of approximately 5,000 feet. The company currently holds approximately 6,700 gross acres within the Warrior South Prospect in its Joint Development Area with MFC Drilling, Inc. and ABARTA Oil and Gas Co., Inc.

For a more detailed presentation of Rex Energy’s Warrior South Prospect results as compared to the results of its Ohio Utica industry peers, please see page 18 of the updated March 2013 Corporate Presentation (see it below).*

*Rex Energy Corporation (Mar 19, 2013) – Rex Energy Announces Warrior South Well Results

Here’s the updated Rex Energy Corporate Presentation from March 2013 (take a look at page 18):