Rex Energy (REXX) issued an operational update on its acreage in the Marcellus Shale in Pennsylvania. The company is active in Butler County, Pennsylvania.
Rex Energy recently completed two wells in the Magill area, and reported a combined initial production rate of 5.9 million cubic feet equivalent per day. The company said that the well production is expected to rise once the wells dewater, and that the production profile of the two wells is similar to the Knauff #1H, a previous horizontal well drilled by the company.
Rex Energy reported the cost of each Magill well at $3.9 million. The company plans to complete two additional wells in Butler County in the second quarter of 2010.
Rex Energy is also active in Westmoreland County, Pennsylvania, and just finished drilling a horizontal well in the Slavek Trust area.
Rex Energy said that a second well is being drilled here, and then the company will turn over operations here to Williams Corp, its joint venture partner in Westmoreland County.
