Rex Energy (REXX) held a conference call on August 3, 2011, and discussed additional operational details on the company’s expanding Utica Shale position.
Rex Energy is moving a rig to drill the horizontal leg of a Utica Shale test well in Butler County, Pennsylvania. This rig just finished a six well pad drilling operation into the Marcellus Shale and Burkett Shale in Pennsylvania.
The name of the Utica Shale well is Cheeseman and Rex Energy expects results from this well in the fourth quarter of 2011. The Cheeseman well is eleven miles south of the Zion well drilled and completed by Range Resources (RRC)
Rex Energy said that the Warrior Prospect has approximately 80 net drilling locations based on 4,000 foot laterals, with 1,000 foot spacing between the laterals. Union Drilling (UDRL) will construct a new rig to be used by Rex Energy to develop the play.
Rex Energy comments on Utica Shale Geology
- Utica Shale is Ordovician age and is the source rock for the overlying Silurian sandstones and Cambrian carbonates and sandstones in Ohio.
- Although the total organic carbon content from 2.4% to 3.7% is low compared to other shale plays, the thickness of the shale makes up for this. The Utica Shale in eastern Ohio is 150 feet thick and the Point Pleasant Formation is 140 feet thick.
- The Utica Shale is mature enough in the area that Rex Energy is involved with to produce wet gas.