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Who’s Who in OH Utica Shale Drilling for 2013

Who's WhoInvestor’s website Market Realist ran a 7-part series on the Utica Shale yesterday–really good stuff. As part of that series they list the biggest drillers/leaseholders in the Ohio Utica Shale. It’s a very useful rundown and update on the latest positions held by the major players of the Utica. We’ve pulled and condensed from their article to give you the latest rundown on who’s who in the Ohio Utica Shale…
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Rex Energy 2Q13: Revenue Up 83%, “Super Rich” Upper Devonian Well

Marcellus driller Rex Energy released its second quarter update yesterday. Operating revenue was way up–83% from last year this time. Gas production was up too–38% from this time last year. Rex has drilled 11 Marcellus wells so far this year, with plans to complete 19. They’ve also drilled 8 Utica Shale wells with plans to complete 11.

Below are the details of Rex’s drilling in both the Marcellus and Utica–along with details about their newly completed “super rich” Upper Devonian well. Select portions of the Rex 2Q13 update:
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5th Upper Devonian Driller + Maps of Best UD Spots to Drill

out of the blueIt seems as if “out of the blue” the Upper Devonian Shale (UD) has popped up on the radar screen–quite suddenly and in quite a big way. The Upper Devonian is located a few hundred feet above the Marcellus Shale layer in the northeastern U.S. Over the past few weeks, MDN has highlighted stories of drillers expanding their UD drilling programs–including CONSOL, Rex Energy, Range Resources and EQT Corporation (see EQT 4th Driller to Target Upper Devonian Shale Layer). Courtesy of a sharp MDN reader, we can add a fifth UD driller to the list: Chesapeake Energy. Todd Sigler reports that Chesapeake has drilled an Upper Devonian well in Hancock County, WV and has several Upper Devonian permits in extreme western Beaver County, PA.

Todd also pointed us to two excellent drilling presentations about the UD, one from Range Resources and one from Rex Energy, which we’ve embedded below. The Range presentation includes a good backgrounder on the UD and a great series of maps showing where the best places to drill in the UD can be found–currently–based on our knowledge and experience so far. The Range presentation also discusses how Range (and others) are adopting a “stacked play” strategy of drilling the Upper Devonian, Marcellus and Utica layers–all in the same well bore. How cool is that?!
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Rex Energy Production Numbers for 3 Utica Wells in Noble County

Rex Energy has just released production numbers for its first three Warrior South Prospect wells in the Ohio Utica Shale (Noble County). Rex’s CEO, Tom Stabley, called the results “strong” and “impressive,” and indeed they are good numbers. The wells produced on the on the order of 4.2-4.7 million cubic feet of methane per day, 724-763 barrels of natural gas liquids per day, and 228-247 barrels of condensate per day. While we’ve seen better methane flow rates from other Utica wells, all three production metrics together (methane, NGLs and condensate) make these wells very profitable indeed.

The full Rex announcement from yesterday:
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OH Port Authority Does Deal to Sell 30M Gal of Water for Fracking

Earlier this week, the Columbiana County (OH) Port Authority brokered a deal to sell a minimum 30 million gallons of water from the Buckeye Water District to R.E. Gas Development, a Rex Energy subsidiary, for use in drilling and fracking new shale wells in Carroll County. The three year deal will let R.E. buy the water at $6.60 per 1,000 gallons…
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Rex Energy 1Q13: Production Up 24%, Revenue Up 40%

Rex Energy Corporation, headquartered in State College, PA, released their first quarter 2013 operational and financial update on Tuesday. MDN calls Rex the “little oil & gas company that not only could, but has”–has made a success in the low-price natural gas environment, that is. Rex mostly drills in the PA Marcellus and the OH Utica Shale regions, with some conventional drilling in Illinois.

Rex reports revenue was up 40% in 1Q13 over the same period in 2012, and production volumes were up 24% over the same period last year. Very impressive. Rex is forecasting they will bring 21 new Marcellus wells and 12 new Utica Shale wells online in 2013. Here’s the complete 1Q13 update from Rex:
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Rex Energy Makes Lease Offers to Western PA Towns

You don’t read much these days about new land deals and offers being made in the PA Marcellus. Oh it happens, but not nearly as much as it used to. So when MDN runs across mention of a new offer, we figure that’s news you want to know about—particularly where and how much?

Rex Energy has just made an offer to Middlesex Township (Butler County), PA to lease some or all of the town’s 20-plus acres located on Browns Hill Road. Rex is just floating the idea at this stage to Middlesex—no specific numbers were thrown on the table. However, Rex did recently make an offer to neighboring Clinton Township, so it stands to reason the numbers for lease bonus and royalties would be similar. Here’s the details:

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Rex Energy Goes to the Bank, Walks Out with $85M

Rex Energy, an independent oil and gas exploration and production (E&P) company headquartered in State College, PA focuses their drilling on the Marcellus/Utica Shale region. Rex announced on Monday they’ve expanded their credit line at the bank–from $240 million in borrowing capacity to $325 million (an $85 million increase). What does it mean?…

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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…

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MarkWest Does Midstream Deal with Rex Energy in Utica Shale

MarkWest Utica, a joint venture between MarkWest and EMG, announced today that they’ve signed up Rex Energy to provide pipeline gathering and processing services for Rex’s Utica Shale wells. Yesterday MDN told you about Rex’s big plans for the Marcellus and Utica Shale region (see Rex Energy Plans to Invest $200M on Marcellus/Utica Drilling in 2013). If you do a lot of new drilling, you’re going to need a way to get the gas to market. That’s what this deal does.

MarkWest says when their construction is done in 2014 they will have the largest processing and fractionation capacity in the entire Utica Shale. Here’s today’s announcement about their deal with Rex:

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Rex Energy Plans to Invest $200M on Marcellus/Utica Drilling in 2013

Rex Energy is planning to invest nearly $200 million on shale drilling in the Marcellus and Utica Shale in 2013. Around $107 million of that will be allocated for drilling in the Marcellus, in the Butler County, PA area, and about $85 million will be spent on Utica Shale drilling in Ohio. See a Rex presentation embedded below for full details of their 2013 drilling plans.

Here’s a rundown of their plans for Ohio’s Utica Shale from the Energy in Depth – Ohio website:

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Rex Energy 3Q12: Income Up, First Utica Well Pumps 70% NGLs

Last week Rex Energy Corporation reported its third quarter financial and operating results. Among Rex’s notable results: The company’s first Utica Shale well averaged a 30-day sales rate of 731 Boe/d (70% Liquids). Counter to many other energy companies, Rex’s 3Q12 revenues were up 14% from the same period last year.

Below are relevant sections of the Rex 3Q12 update:

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Rex Energy Reports Results from First Utica Shale Well

Rex Energy announced initial production results from their first Utica Shale well—the Brace #1H well drilled in Carroll County, Ohio. Rex’s CEO, Tom Stabley, says the initial results are among the best in the county to date (see the numbers below). The company plans to drill an additional nine wells in 2013.

From the Rex announcement:

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PA Residents Weary of Fight with Rex over Water Contamination

MDN reported six months ago about an ongoing case 30 miles north of Pittsburgh in Connoquenessing Township, PA, in a community called the Woodlands. Some residents claim their well water was contaminated after Rex Energy drilled at least 15 natural gas wells in the area (see this MDN story). Water buffalos were installed for 11 families, but after a year and extensive testing, the PA Dept. of Environmental Protection (DEP) said that Rex Energy’s drilling was not the cause and Rex-sponsored water deliveries ended.

A new story in the Pittsburgh Post-Gazette updates the story with this background:

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