Utica Shale

Rex Energy Reports Success Of Cheeseman #1H Utica Shale Well

Rex Energy (REXX) reported the successful completion of the company’s first well into the Utica Shale formation.  The well was drilled and completed in the dry gas area of the play in Butler County, Pennsylvania.

The Cheeseman #1H well had a twenty four hour production test rate of 9.2 million cubic feet per day of natural gas.  The well was drilled with a 3,551 foot lateral and completed with a twelve stage hydraulic fracturing operation.

Rex Energy did not disclose the cost of the Cheeseman #1H well and said that it would discuss development plans for the Utica Shale once the company sets its 2012 capital budget.

Rex Energy To Purchase Utica Shale Leases In Ohio

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.

Gulfport Energy - Utica Shale Well Assumptions

Gulfport Energy (GPOR) estimates that wells into the Utica Shale will cost approximately $5 million and be drilled to a vertical depth of 7,500 to 9,500 feet.  The wells will require a 5,000 foot lateral, twelve hydraulic fracturing stages and be spaced 160 acres apart.

Gulfport Energy said that each section in the Utica Shale contains 36.4 million barrels of original oil in place, and each well will have an estimated ultimate recovery (EUR) ranging from 455,000 to 910,000 barrels of oil equivalent.

The Utica Shale is approximately 140 feet thick and has an average porosity of 8%.  The recovery factor is estimated to range from 5% to 10%.