Replies to This Discussion

Permalink Reply by glenn on November 1, 2011 at 9:20pm

Fantastic numbers. I am sure the Cheeseman family will do just fine with these royalties! And not even a superlong lateral either. But then again what is capable to be produced and what is actually let out of the "selling" end of the pipe may be two different things. Let's all pray for more and more uses ie. increased demand for our bounty!

Permalink Reply by Michael P. Davidson on November 18, 2011 at 11:40am

Are there any land owner groups in the Muddy Creek area?  we have 26 acres along rt 19 and are interested in offers, Rex offered $3,000 and 15%.

Permalink Reply by DKinPA on November 4, 2011 at 4:01pm

Driller taps Utica Shale
Rex Energy completes test

By Kelly B. Garrett
Eagle Staff Writer


Muddy Creek Twp — Rex Energy is looking above and below the Marcellus Shale for sources of natural gas in Butler County.

Jesse Carl, a company representative, said the company has completed a successful test of a Utica Shale gas well drilled on the Cheeseman property in the township.

This is Rex Energy’s first Utica Shale well, and Carl said he believes it is the first Utica well in the county.

Utica Shale extends from Lake Erie and Lake Ontario, through lower New York state and almost all of Western and northeastern Pennsylvania, into eastern Ohio and most of West Virginia.

While Marcellus Shale is 4,000 to 7,000 feet below the earth’s surface, Utica Shale is 3,000 to 7,000 feet below the Marcellus.

Carl said the Cheeseman well is about 8,000 feet down from the surface.

He said a 24-hour test of the well found a production of 9.2 million cubic feet (MMcf) of dry natural gas per day.

Dry natural gas means that the only gas coming out of the well is natural gas.

Rex Energy’s Marcellus Shale wells in the county are, for the most part, wet gas wells, meaning what comes out of the well is natural gas along with wet gases such as propane and natural gasoline.

The company built the Sarsen Plant in Jackson Township to process the wet gases from the natural gas, which is an economic benefit to Rex Energy.

“Say we’re selling natural gas for $4.50 per MMcf, with the production from the well being about nine-tenths natural gas, and an additional 1C\v gallon of liquid,” Carl said.

Selling both the natural gas and the other gases means a total selling price of $5.39 for the MMcf of natural gas.

The Cheeseman well will come online in January to produce gas, Carl said.

Rex Energy also has drilled a test well in another shale level, the Upper Devonian Shale, which is several hundred feet above the Marcellus Shale.

Gas industry experts in recent months have found that the Upper Devonian Shale seems to be on the same natural gas production level as the Marcellus, and it also has wet gas.

Rex’s test Upper Devonian well, the Gilliland HB, is in Connoquenessing Township.

A third quarter report issued Wednesday by Rex Energy states the company plans for additional Utica and Upper Devonian wells in Butler County next year.

Carl said Rex Energy’s Voll Compression Plant should be done in January. This plant is an addition to the Sarsen Plant in Jackson Township, and will add 40 MMcf to the 30.7 MMcf Sarsen Plant.

Additionally, the Bluestone Plant, Rex’s second processing plant, should be completed by May. This plant will have a 50 MMcf capacity.

The properties in Jackson Township where each of these plants are located are owned by separate landowners, but are close to each other.

Rex has drilled 29 wells in the county this year, with 16 producing gas.

Another 20 wells have been drilled in the county, but are not completed while another four wells are completed but awaiting pipeline infrastructure.

Permalink Reply by dr j on November 10, 2011 at 9:22pm

Anyone know unit size for the Cheeseman well?

 

Permalink Reply by cheliped on December 6, 2011 at 6:25pm

anyone know of any wet gas from the cheeseman well?