Bolstered by a joint-venture agreement, Rex Energy continues to drill Utica Shale wells in Carroll County.
The Pennsylvania-based company released its first-quarter earnings Tuesday ahead of a Wednesday morning conference call with investors.
Rex Energy lost $62.2 million or $1.11 per share during the quarter. Revenue from operations was down 44 percent and commodity revenue dropped by a third from the same quarter a year ago.
Production from Rex wells was equal to 200 million cubic feet of natural gas a day, up 7 percent from the fourth quarter. Oil, condensate and natural-gas liquids, including ethane, accounted for 38 percent of production.
Rex spent $30.6 million during the quarter, nearly all of it on projects in the Utica and Marcellus shales. That spending was offset by $31.8 million in reimbursements through a joint venture with Benefit Street Partners, an affiliate of Providence Equity Partners.
In Carroll County, Rex drilled two wells, fracked a well and placed four wells in production during the quarter. The company had five wells drilled and waiting to be fracked at the end of March.
The three-well Kiko pad in Washington Township went into production during the first quarter. The wells averaged five-day sales rates equal to 1,300 barrels of oil per day. The production included 2.3 million cubic feet of natural gas per day, 502 barrels of natural-gas liquids per day and 369 barrels of condensate per day, assuming full ethane recovery.
The Kiko wells averaged 4,900 in lateral length and were fracked in 33 stages.
Rex is finishing its three-well Goebeler pad in Harrison Township and expects to begin production this quarter. The Goebeler wells have average lateral lengths of 7,360 feet. The company said it would begin fracking its two-well Perry pad, also in Harrison Township, when the Goebeler project is finished.
Rex has drilled 37 Utica wells in Ohio since 2012. The company is headquartered in State College, Pa.
Reach Shane at 330-580-8338 or firstname.lastname@example.org
I'm in the Kiko 2H and haven't seen a dime. Rex sent a 'Congratulations! You're in a unit!' letter out and stated they are holding royalty payments until they meet a minimum as stated in my lease. Figuring the length of time it will take for Rex to meet the minimum it might be 2017...
They also drill that lateral under a neighbor's land that claims there was no lease in effect and there's a lawsuit filed for that, and a counter-suit. There's also a law suit brewing over Rex's deductions prohibited by the S.U.R.E. lease.
Fun times, eh?
Go to the Hope Christian Fellowship and contact Rob Sanders, who is the last Lawyer on the last page of the Complaint.
Rob can put together a Compliant for all in Ohio Leased to REX.
The state of Ohio has their hands tied. Now how could that have happened?
Hey RL Not too worry, the March statement is a whole lot better!
Oil, condensate and natural-gas liquids, including ethane, accounted for 38 percent of production.
Those Landowners in Carroll County under production by REX, make sure your Royalty Statement shows Oil, Condensate, and NGLs as stated above.
If not, it could be time to put together your Complaint.