Rex Energy (REXX) announced an 11,000 net acre position in Ohio that is prospective for the Utica Shale. The company said that the leases at the Warrior Prospect are subject to a title review before closing.
Rex Energy is actually targeting the Point Pleasant formation, which lies between the Utica Shale and the Trenton Limestone. The company said that the target formation is approximately 140 feet thick with porosities ranging between 8% and 12%. Total organic content of the Point Pleasant is between 2.4% and 3.7%.
Rex Energy agreed to pay $40 million or $3,600 per acre for this Utica Shale leasehold, which is located in Carroll County. The company said that the acreage is in the liquids rich area of the Utica Shale and development will start in 2012.
Rex Energy has acreage prospective for the Utica Shale on other properties under lease, and the acquisition will increase the company’s total leasehold to 83,500 gross or 57,900 net acres. The company is drilling a Utica Shale test well in Butler County, Pennsylvania and plans to conduct hydraulic fracturing operations on this well in the third quarter of 2011.