Rex Energy buys Leases from Shell (S.W.I.P.)

We just received a letter from Rex Energy stating they have acquired our lease from Shell. We are located in the Northern part of Beaver County. My questions are:
What is the reputation of Rex?
Is Rex actively signing new acreage and at what terms?
How active is Rex drilling new wells?
IMO, Shell had not interest is drilling in the near future. They seem to be focusing mainly on the development of the new Cracker Plant. Any thoughts appreciated.
Thanks
Jeff

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Replies to This Discussion

Permalink Reply by My Crackers on September 9, 2014 at 3:12am

Ditto

Permalink Reply by Trapper on September 9, 2014 at 3:48am
Ditto too.
Lots to drill in such little time!
Maybe the same terms first option clauses will get a work out....Cha Ching!
Permalink Reply by My Crackers on September 9, 2014 at 4:27am

I was wondering the same thing...If they don't get a hole dug, would they renegotiate the lease and if they do get a hole dug I'm assuming at least they have to stick to the agreed upon %'s...I guess time will tell.  

Permalink Reply by My Crackers on September 11, 2014 at 4:31am

I used to travel to Poland a couple times a year and hate to see anything affect them negatively but I would think this kind of thing only spurs on companies in this country to frack...  

Russian gas supplies to Poland drop further

Permalink Reply by Thomas Betlyn on September 9, 2014 at 5:45am

Information about REX is in the letter you received.  Nothing in your lease can change until it comes up for renewal.  Until then what you signed with Shell still applies. I'm in North Sewickley Twp as it appears most of us on here are located in or near this part of Beaver County.

Permalink Reply by Trapper on September 9, 2014 at 5:56am
In their website announcement I believe they mention the fact that much of the leasehold has extension language as a good thing. They also allude to possible joint venture but do not say who.
My Shell lease has first option @ same bonus and terms language. Depending how fast they can drill and form units,a lot of us may get bonus again the way I see it. Cha Ching!
Permalink Reply by My Crackers on September 9, 2014 at 6:08am

Correct, so if they can't get holes dug by the time the lease runs out they will probably renegotiate the terms unless there's language like that in the agreement...I really need to dig into my agreement...

Permalink Reply by Trapper on September 9, 2014 at 6:22am
Good luck to us all!
Permalink Reply by buggs on September 9, 2014 at 7:44am

They may put a vertical in just to hold the lease.

Permalink Reply by James Foster on September 11, 2014 at 5:36am

That should not hold the lease.  Your lease should state what production is for holdling a lease.  A vertical well into shale will produce nothing and should not hold a lease.  A bulldozer that is broken sitting at the pad site should also NOT hold a lease. The construction of a pad, fence, driveway.  NONE OF IT!   Get this stuff in the lease.

Permalink Reply by buggs on September 11, 2014 at 5:59am

It does happen though.

Permalink Reply by randall gottus on September 9, 2014 at 6:35am

..regarding NORTHERN BUTLER COUNTY...A few months ago Rex Energy signed a 20 year Gas Transportation Agreement with Dominion...allowing Rex and possibly Markwest to use their existing pipelines to transport the gas down to the Gulf. As part of the agreement ,Dominion has to maintain/update existing gas lines , and construct several more.(Bizjournal.com.4/14).  Also in Northern Butler County, there HAS been lots of activity in Allegheny Twp. and SOON they will be moving into Venango Twp next.

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