STATE COLLEGE, Pa., June 6, 2011 (GLOBE NEWSWIRE) -- Rex Energy Corporation (Nasdaq:REXX) is providing an operational update for each of its regions and its upcoming conference schedule. Unless specifically stated otherwise in this news release, all numbers are gross.
Appalachian Basin - Butler County, Pennsylvania
Rex Energy operates and owns a 70% working interest in its Butler operating area. The company currently has three horizontal rigs contracted for its Butler development.
In the Butler operating area, the company has completed fracture stimulation on the three well Talarico pad. These wells had a combined average five-day rate of 13.1 MMcfe per day. All three wells are currently selling natural gas and associated liquids through the Sarsen plant. The company has also fracture stimulated two wells on the McElhinney pad, which are currently flowing back. An updated well schedule is currently available on the company's website under the appendix section of the June corporate presentation.
Appalachian Basin - Westmoreland & Clearfield Counties, Pennsylvania
Williams Companies (Williams) is the operator of Rex Energy's acreage in Westmoreland and Clearfield Counties, where the company owns a 40% working interest.
In Westmoreland County, Williams recently completed fracture stimulation on the three remaining wells on the Uschak #2 pad. The three wells are currently flowing back and are expected to be placed into sales by mid-June. Williams has begun fracture stimulation on the three well Androstic pad and expects to be completed by mid-June. An updated well schedule is currently available on the company's website under the appendix section of the June corporate presentation.
Rex Energy has entered into an acreage trade with Williams in the Westmoreland County and Butler operating areas. The company traded to Williams approximately 3,000 undeveloped gross acres in southeast Westmoreland County, receiving in return approximately 3,000 gross acres in the Butler operating area. The acreage received in the Butler operating area is contiguous to the company's existing Butler position. Additionally, Rex Energy has acquired a one-year option to acquire an additional 2,400 gross acres in its Butler operating area. Costs for this acquisition are being funded out of the company's previously announced 2011 capital budget. Both transactions are within the company's AMI with its partner, Sumitomo Corporation. A reconciliation of the company's gross and net acreage position is provided in its updated investor presentation, which can be found at Rex Energy's website.
Illinois Basin – ASP Update
Rex Energy is pleased to announce increasing preliminary oil response in its Alkali-Surfactant–Polymer (ASP) Pilot at the Bridgeport Field in Illinois. The 15-acre ASP pilot project at the Middagh Unit, which began ASP injection during August 2010, has experienced an increase in average oil cut from 1.0 to 8.0 percent in the project area. Oil production has climbed from 16 to 82 gross barrels per day and is continuing to increase. In the first responding producing well, a steady increase from 1.5 to 18.0 percent oil cut was observed over the past 60 days. To date, there has been no breakthrough of the ASP chemicals, which provides increasing confidence that the project is continuing to respond appropriately.
Rex Energy previously announced an increase in the 2011 capital budget that included $3 million for expansion of the ASP flood into the 58-acre Perkins Smith project area, which is directly west of the 15-acre Middagh pilot. The company has started the brine injection pre-flush of the project area and remains on track to commence ASP injection in late fourth quarter 2011.
"While we are very encouraged by the ASP pilot performance to-date, it is still premature to estimate the eventual pore volume oil recovery of the pilot, or translate the preliminary response into tertiary recovery proved reserves. We will continue to update the market on the pilot's production performance in subsequent operational updates," said Pat McKinney, Rex Energy's Executive Vice President and Chief Operating Officer.
Upcoming Conference Schedule
Management from Rex Energy will be participating in the following investor conferences. Presentation dates, times and webcast availability are all subject to change at the discretion of the conference organizer. Please refer to the Rex Energy website for further details on these conferences and other upcoming events.
The presentation for the events listed above will be available on the Investor Relations section of the Rex Energy website, under Events & Presentations. The presentations will be posted no later than 24 hours prior to the presentation time and will remain available for thirty days after the event.
About Rex Energy Corporation
Rex Energy is headquartered in State College, Pennsylvania and is an independent oil and gas company operating in the Appalachian, Illinois and Denver-Julesburg Basins within the United States. The company's strategy is to pursue its higher potential exploration drilling prospects while acquiring oil and natural gas properties complementary to its portfolio.
The Rex Energy Corporation logo is available at
Except for historical information, statements made in this release, including those relating to capital expenditures, production growth, planned number of wells, timing of rig operations, fracture stimulation activities, completion of wells, expected dates that wells are producing hydrocarbons that are sold, and expected timing for the expanded ASP pilot, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are indicated by words such as "expected", "expects", "anticipates" and similar words. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and the company's future performance are subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including (without limitation) the following:
- adverse economic conditions in the United States and globally;
- the difficult and adverse conditions in the domestic and global capital and credit markets;
- domestic and global demand for oil and natural gas;
- sustained or further declines in the prices the company receives for oil and natural gas;
- the effects of government regulation, permitting and other legal requirements;
- the geologic quality of the company's properties with regard to, among other things, the existence of hydrocarbons in economic quantities;
- uncertainties about the estimates of the company's oil and natural gas reserves;
- the company's ability to increase production and oil and natural gas income through exploration and development;
- the company's ability to successfully apply horizontal drilling techniques and tertiary recovery methods;
- the number of well locations to be drilled, the cost to drill and the time frame within which they will be drilled;
- the effects of adverse weather on operations;
- drilling and operating risks;
- the ability of contractors to timely and adequately perform their drilling, construction, well stimulation, completion and production services;
- the availability of equipment, such as drilling rigs and transportation pipelines;
- changes in the company's drilling plans and related budgets;
- the adequacy of capital resources and liquidity including (without limitation) access to additional borrowing capacity; and
- uncertainties associated with our legal proceedings and their outcomes.
The company undertakes no obligation to publicly update or revise any forward-looking statements. Further information on the company's risks and uncertainties is available in the company's filings with the Securities and Exchange Commission.
The company's internal estimates of reserves may be subject to revision and may be different from estimates by the company's external reservoir engineers at year end. Although the company believes the expectations and forecasts reflected in these and other forward-looking statements are reasonable, it can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.
CONTACT: Tom Stabley Executive Vice President and Chief Financial Officer (814) 278-7215 firstname.lastname@example.org www.rexenergy.com