Rex Energy Announces Impressive Sales Rates For Warrior South Wells
Three wells from Rex Energy’s Warrior Prospect South in Noble County now have the infrastructure in place to allow the wells to officially come online, and for the gas to be sold to market. When Rex Energy performed its initial tests in March, the company announced that it had to await pipeline infrastructure before they could place the wells into sales lines for processing and distribution. Since then, the wells have been shut in. But this week, Rex announced the pipeline infrastructure build out has been completed to the well pad, and the company is now producing from three wells in Noble County.
Rex also announced its 5-day sales rates from their Noble 1H, Guernsey 1H and Guernsey 2H wells, which continue to look very promising. The wells that were put into sales are located on the Noble/Guernsey County line near Quaker City. According to Rex’s CEO, Tom Stabley:
“The strong initial sales rates of our first three Warrior South wells demonstrate the prospects for Rex’s approximately 7,000 gross acres. Given these impressive initial sales rates, we expect the Warrior South Prospect to have a meaningful impact on Rex’s current and future production growth.”
All three wells are liquids rich, producing between 42 and 44 percent natural gas liquids. These natural gas liquids (NGLs) include propane, ethane, pentane and butane, which sell for a higher rate than dry natural gas. NGLs are also what make the Utica a sought after play, as these liquids are in high demand for our chemical and manufacturing base in the United States. Furthermore, these wells also produced 13 to 14 percent condensate, which is a valuable feedstock for oil refining and other petrochemical industries.
|Warrior South Well Results – 5-Day Sales Rates|
The exciting results from these wells show a lot of promise for Rex’s Warrior Prospect South, and the company is already busy developing the 5th well on their five-well pad just north of these wells in Guernsey County. Those wells are scheduled to go into a sales line in late 2013. With over 7,000 gross acres in their Warrior Prospect South portfolio, Rex Energy will be developing plenty of great wells in the future – which is only a snapshot of the promise and potential of the Utica Shale.