Utica Shale Test Well Results

Rex Energy completed its initial horizontal Utica Shale test well, the Cheeseman #1H. The well had a lateral length of 3,551 feet and was completed with 12 stages of fracture stimulation. The well is located in Muddy Creek Township, Butler County, Pennsylvania and had a stabilized 24-hour test rate of 9.2 MMcf/d of dry natural gas. The well is currently shut in and current plans are to have the well placed into sales once the gathering line is completed, which is scheduled for January 2012. The company is encouraged by these results and plans to drill and complete additional Utica Shale wells in Butler County during its 2012 drilling program. Rex will discuss its Pennsylvania Utica Shale development plans and expected well costs in December when the 2012 capital budget is released.

 

 

These numbers are HUGE and indicate tthat our leases are worth more than is currently being offered.

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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!

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%.

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.

Anyone know unit size for the Cheeseman well?

 

anyone know of any wet gas from the cheeseman well?

Where is the Bluestone processing plant located and isn't Markwest involved with it? I have seen a couple row agreements recorded in Perry Twp. Lawrence County regarding Markwest and pertaining to Bluestone.

Was wondering if there is an expansion of this facility in the works. Also does Sunoco have any involvement with the Bluestone plant?

Trapper, 

http://gomarcellusshale.com/group/butler_county/forum/topics/upper-...

Lot of the info and links in this thread. (I would copy them all and repost but my copy and paste skills suck, plus I am lazy. lol)

Bluestone is over near Harmony off Hartman Rd I believe. Markwest is the main player I believe. Rex has a piece I think. Markwest seems to do all the pipelines for Rex.

Yes - expansion or another plant is in the works - check out the presentation Phil has linked for more info.

Sunoco ? Don't think. Sumotio, spelled wrong I am sure, has an interest in Rex.

Cheers

Thanks FMV!

There is a Markwest line in the works near me which is heading in the bluestone direction I think. I have to look again but I think Sunoco is written on one of the stakes. This is in extreme northern Beaver County in Big Beaver Boro. Further east , crossing Chappel Drive in North Sewickley or Franklin Twp. (not sure which) there are more markers. It appears to possibly be headed towards the Bluestone Plant. Also see these markers crossing Rt.168 between New Galilee and Darlington. The only wells west of this point are Shell's Patterson and Gateway wells. Another possibility is the new treatment plant further west near New Middletown,OH which is only a few "crow miles" from here. I have a hunch Butler County will soon be playing a role in the processing of ngl for some of it's neighbors!

Trapper,

I must admit I have not been paying much attention to Beaver Co.- did not think much action going on there. That said... pipelines are gonna be bigger impact than the drilling.

If Shell does build the Cracker, Beaver is gonna be plowed up !  lol

Bluestone is only a hop-skip-and a jump from most anything in Beaver, so may make $$$ sense to send it there.

Have not heard much about Sunoco - have to check that out.

Cheers

Do you think that our leases will renew in 2017?

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