Drilling Down

Rex Pumps $317M Into Marcellus, Utica

STATE COLLEGE, Pa. — Rex Energy Corp. says it spent $317 million and drilled 51 wells last year to develop leasehold acreage in the Marcellus and Utica shale plays, including land in Carroll County, Ohio, and Butler County, Pa.

Rex reports the company drilled six wells, hydraulically fractured 12 others and placed 12 more into production during 2014 in its Warrior North Prospect in Carroll County.

The company is currently drilling the second well at the three-well Kiko pad in Carroll County. The three wells are expected to have laterals each of 5,000 feet, and the pad should be completed by the second quarter of 2015, the company said.

Meanwhile, exploration continued in Rex’s Warrior South Prospect in Guernsey, Noble and Belmont counties in Ohio last year. Rex drilled 6 wells, fractured six more and has six wells waiting to be placed into sales at its J. Hall pad in Guernsey County.

The six-well J. Hall pad produced at a five-day sales rate of 1,802 barrels of oil equivalent per day and a 30-day rate of 1,364 barrels of oil equivalent per day, the company said.

In western Pennsylvania’s Marcellus shale, the company drilled and hydraulically fractured 38 wells last year in its Butler [County] Operated Area. It placed 34 wells into sales in this part of the play, and had 12 wells awaiting completion as of Dec. 31.

During the fourth quarter of 2014, production hit 196 million cubic feet of natural gas per day, a 78% increase over the same period in 2013, the company said.

Rex reported a net loss of $72 million for the fourth quarter, or $1.35 per share, versus a net loss of $15 million, or 26 cents a share, in the fourth quarter of 2013. For all of 2014, Rex posted a net loss of $50 million, or 94 cents per share, compared to $2 million, or five cents per share, during 2013.

Published by The Business Journal, Youngstown, Ohio.