Big news; Rex buys Shell's holdings

Rex Energy is expanding in Pennsylvania and Ohio with the acquisition of about 208,000 acres from Royal Dutch Shell for $120 million in cash in a deal that stands to increase the company’s footprint in the Appalachian Basin by 200 percent, the State College-based driller said Tuesday.

Rex Energy said it struck a deal with affiliate of Shell called SWEPI to acquire a 100 percent interest in 208,000 acres in the Marcellus, Upper Devonian/Burkett and Utica shales in Pennsylvania and Ohio.

The acreage is in Armstrong, Beaver, Butler, Lawrence, Mercer and Venango counties in Pennsylvania and Columbiana and Mahoning counties in Ohio, which the company calls its “Butler operated area.”

http://powersource.post-gazette.com/powersource/companies-powersour...

Hat  tip to Philip Thackery.

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Permalink Reply by gary smith on August 13, 2014 at 1:16pm

shell will just go across either border, into ohio or west Virginia to build the cracker. why deal with leftists?

Permalink Reply by Philip Thackray on August 13, 2014 at 12:16pm

Jed,

In my opinion this has nothing to do with the cracker plant.  Ethane is and will remain incredibly cheap and available.  All the cracker plants that are planned can never use the amount of ethane that will be produced.

Phil

Permalink Reply by Charles Randolph on August 13, 2014 at 12:20pm

Has anyone compared the per acre price which Lance Shaner and Rexx have paid for this Shell acreage versus the per acre price which Shell paid Terry Pegula and East Resources in that multi-billion dollar deal ?

Permalink Reply by Dexter Green on August 13, 2014 at 3:48pm

Shell overpaid East and Rex underpaid Shell.  There's a reason the majors are so bad at shale deals.  

Mike MurphyPermalink Reply by Mike Murphy on August 13, 2014 at 8:59pm

looks like shell is following BP and Halcons lead and getting out of the northern Utica 

Permalink Reply by Jed Clampett on August 20, 2014 at 8:14am

But Shell kept areas NORTH like in Warren, Elk, Forrest and further east.  Where they have drilled test wells already.  Looks like they just wanted out of the middle Utica.

Permalink Reply by paleface on August 13, 2014 at 11:41pm

 Dexter you couldn't be more wrong.

Permalink Reply by Dexter Green on August 20, 2014 at 9:03am

Present an argument to the contrary then.

Permalink Reply by paleface on August 20, 2014 at 9:26pm

The big oil and gas companys have a much larger profit margin to meet.Shells stock holders is larger than most small companys are worth.Shells is very pleased with northern Tioga county just a few townships coverd the whole deal to east.The Utica shale is 450 feet thick with gas and liquids. If Shell sold Tioga county they would want a lot more than they paid East Resources.

Permalink Reply by pg guy on August 21, 2014 at 1:15am

paleface -

Do you have any source or documentation that Shell (or anyone) has produced any liquids from the Utica in Tioga or Potter Counties?  I have heard that rumor, but so far it seems to be unsustantiated.  That would be a very interesting development.  (I agree that a few townships in PA northern tier justified the East Resources deal.)

Permalink Reply by Jon on August 21, 2014 at 7:23am

According the maps tioga county is dry.

Permalink Reply by Dexter Green on August 21, 2014 at 3:06am

So your argument is conjecture and speculation about future deals that nobody has even supposed will happen?  Yeah, I sort of meant present an argument supported by facts to counter my claim. 

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