Rex and Their Shell Holdings in W.PA

Well , its been over a year since the big buy and not much action. My neighbor's lease expired in Sept. and no renewal..... This is 3 miles from the Patterson Pad where they keep drilling. My and many,many other leaseholds come due in the next 11-18 months. Are we wasting time holding out hope?

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Permalink Reply by Geo5 on November 19, 2015 at 2:05am

Matt, im not 100% sure how the joint venture works, but it was something like, 8 wells in the butler area, and 8 wells in the moraine east area to start with.  Then there was an option for 16 more wells.  My guess, it seams like they already did an extra 8 wells in the moraine east area this year, so i wonder if they already did the option for the extra wells.  Rex don't talk about it in there presentations any more.

Permalink Reply by michael motorcycle on November 19, 2015 at 6:31am
I agree that most of the Shell leases will not be developed. The issue is the 18% no deduction clause and the extension bonus. If you check the Butler county recorder of deeds website, there are old East leases from 2010 that were recently released and not extended or leased again. Western land services approached us about a ROW from the Williams well to the National Fuel line in slippery Rock about 5 months ago but because Rex let our Shell lease expire and did not exercise the extension we opted not to sign although they are still attempting to obtain ROWs in the area. Rex's partnership with Stonehenge did include all of the acquired Shell leases in Butler county but I believe the joint venture with Arclight only pertains to the Moraine East area and their legacy area.
Permalink Reply by Jon on November 19, 2015 at 12:46pm
Permalink Reply by Philip Thackray on November 20, 2015 at 1:12am

Jon,

Ugh!!!  I'm in the Rex Brownsdale West unit (well pad behind Gumto's greenhouse on Meridian Road in Penn Township, Butler County, PA) so I pay attention to what is going on with Rex.  This is pretty bad news.  Having downgraded Rex to Caa1, the only good news from the report was this: "The ratings are supported by the company's growing production and reserve base scale being better than most Caa1 peers. REXX will benefit from improved well performance in the Butler County area of the Marcellus Shale play and the improving midstream infrastructure in the region."

Rex IS getting much better results from their recent well completions.

I hope that they can hold on.

Phil

Permalink Reply by LewPa on November 20, 2015 at 4:01am

Phil,

Now that you're getting Rex royalties, how does Markwest prices on products compare to XTO's prices from your other wells?   Thanks, LewPa

Permalink Reply by Krendale on November 22, 2015 at 3:13pm

I looks like REX still has interests in Butler Township! Krendale Golf Course leased thru 2018.

Permalink Reply by Jon on November 22, 2015 at 4:11pm
Good to hear
Permalink Reply by Krendale on November 23, 2015 at 2:11pm

Good for the lease holder..........but the well pad of 11 wells will be less than a mile from 1400 residential properties, shopping malls, the VA Hospital, a medical center, and a main highly traveled State Road.

Sometimes I wonder about DEP's regulations...........

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