Rex Energy canceling lease agreements

After signing a lease with Rex Energy in January, 2012, and waiting months for Rex to sign (they said there was a "problem" with how my land was held in trust), my lawyer informed me this past Friday that Rex contacted him and said they were no longer leasing land in Carroll County, Ohio. Does anyone know anything about this? I heard Rex might be selling out to Chesapeake.

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Permalink Reply by Mike h on May 31, 2012 at 12:43pm

Here's my thinking on it. Their stated program in Carroll county only includes 2 wells that are close to each other. They just completed the first one (Brace), will frack it in June and then will wait 60 days before flowback because apparently waiting allows fracking water dissipation and improves well performance over time. This means they won't have results data from Brace until late July/August. Having data on performance may cause/enable some tweaking for when they drill Graham. This is the only story I come up with that matches the information that is available.

Permalink Reply by Jim Litwinowicz on June 1, 2012 at 2:25pm

Utica; Where is Rex drilling a well in Lawrence Co?

Permalink Reply by mandyriffic24 on June 1, 2012 at 3:22am

Our family just recently signed with Rex this past week in Noble County. They have leased quite a bit of acreage in both Guernsey & Noble from a coal company and according to the man we've been dealing with are planning to drill a well there in the very short term as well.

Reading the headline of this discussion has me a little nervous to say the least!

Permalink Reply by Schnoozie on June 1, 2012 at 3:38am

Its hard to say who is who on here and the nature of the discussion is one thet ties Rex with Cheapeake, Chess being the bad guy, equals hey maybe Rex is bad too!!! creating doubt. It's BS. 

You signed with a Local company, with a huge long term money comitment to the area, their own Cryogenic plant near Butler, lots of wells lots of pipe, lots more planned, why be nervous.

Permalink Reply by Jim Litwinowicz on June 1, 2012 at 11:04am

Yep, that cryogenic plant in Butler Pa should really help those people in Noble Co, Ohio

Permalink Reply by Jim Litwinowicz on June 1, 2012 at 2:25pm

mandy;  I wouldn't worry too much about Rex.  There are several reasons why a company pulls out of an area.  Maybe they determined that the geology in Carrol Co didn't match up with what they are looking for.  Perhaps they found out all the major transmission lines were at capacity and couldn't get a contract with a midstream to carry their product to market. Maybe they realized they couldn't get a large enough leasehold to continue pursuing more land there.

Rex is a solid company that does good work, AFAIK. Never heard anything bad about them.

Permalink Reply by mandyriffic24 on June 1, 2012 at 2:58pm

Jim:

Thank for the input. I am trying not to get too concerned with it yet. I have a good feeling about it all for the most part only because I know that we are part of a much larger tract of land that Rex has leased already. I think that makes the chances better that we will actually see our money. I'm going to be patient and see what happens. It just made me a little concerned when I read the headline like I said. Thanks again Jim, much appreciated!

Permalink Reply by Canter on March 17, 2013 at 12:42am

jim

CHK sold my lease to Rex at the end of 2012, so they must still be interested in washington twsp carroll county, at least I hope so.

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