Rex Energy Corporation provided an update Wednesday on both its Appalachian Basin operations as well as its first quarter 2014 production.
Appalachian Basin - Butler Operated Area, Pennsylvania
In the Butler Operated Area, the company has recently added a second rig to its drilling program in accordance with its previously announced plans. The additional rig will allow the company to drill more wells per pad than it has historically averaged while continuing to ensure that its core acreage is held by production. The company currently plans to drill four pads during 2014 with at least five wells per pad.
The rig is currently drilling the first of five wells on the Ferree pad, which is the company's first of two stacked Upper Devonian Burkett/Marcellus tests in 2014.
The company is currently drilling the second of three wells on the Shipley pad. The wells, which are expected to be drilled with an average lateral length of approximately 5,800 feet, will test 600 foot spacing between the laterals. This continued testing, in addition to the Baillie Trust pad, is expected to provide additional confirmation of the company's resource potential in its Butler Operated Area. For the remainder of 2014, the company expects to utilize two full-time drilling rigs to drill 40 - 45 wells in its Butler Operated Area.
In addition, the company is currently completing its three well Schilling pad. The three wells were drilled with an average lateral length of approximately 5,800 feet, which represents the longest average lateral length of any combination of wells drilled in the Butler Operated Area. These wells are expected to be placed into sales during the second quarter of 2014.
Butler Operated Area - Midstream
As previously announced, the company's existing 90 MMcf/d of processing capacity at the Sarsen and Bluestone facilities is substantially filled. The company expects the Bluestone II facility, which is currently under construction, to be commissioned in the second quarter of 2014, adding an incremental 120 MMcf/d of processing capacity in the Butler Operated Area (of which 100 MMcf/d is dedicated to Rex Energy).
With the expected commissioning of the Bluestone II facility and additional dedicated processing capacity, Rex Energy currently expects to place 10 - 15 wells into sales in the second quarter of 2014.
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