REX Update On Butler Co Operations

Appalachian Basin Butler Operated Area, Pennsylvania

In the Butler Operated Area, the company has added two Upper Devonian Burkett wells to its Ballie Trust pad. The Ballie Trust pad, which previously included four planned Marcellus wells, will be expanded to include two Upper Devonian Burkett wells for a total of six wells. The expanded Ballie Trust pad will include two laterals in the Upper Devonian Burkett, which will be stacked vertically above the laterals in the Marcellus. The six wells on the pad are expected to have an average lateral length of approximately 4,400' feet, which represents the company's longest average lateral length for all wells drilled from a single pad to date in the Butler Operated Area. The company is not increasing its capital expenditure budget for 2013 at this time as it believes the incremental cost from the two additional wells is offset by decreased drilling and completion costs from operational efficiencies in theAppalachian Basin. Because Rex Energy currently expects these wells to be placed into service late in 2013, the company is not increasing its full year production guidance for 2013 at this time.         

 (GLOBE NEWSWIRE)

I  do not know where that pad is.

Stacked vertically above the laterals in the Marcellus, hmmm.

Showing some interest in the Burkett - stacked pays indeed.

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Replies to This Discussion

Permalink Reply by Oliver Perry on June 21, 2013 at 8:58am

Baillie Trust Unit is in Jackson Township. Stacked pays means exiting times for Butler County in the years to come.

Permalink Reply by FairMktValue on July 21, 2013 at 11:15pm

As Oliver says above "exiting times....... "

I do not have time at the moment to expand on this but i will be back later to offer my two cents.

I know yall just can't wait for that. LOL

Permalink Reply by RB on July 19, 2013 at 6:54am

what is stacked pays? are they drilling multiple layers?

Permalink Reply by FairMktValue on July 21, 2013 at 11:04pm

Attached is a Rex  presentation that may help explain. Pg 24 shows "stacked plays" quite nicely.

Attachments:
Permalink Reply by FairMktValue on July 22, 2013 at 2:03pm

"Stacked Pays" - Oh what fun!!

Butler Co. is a real, real sweet spot for the stack. If you have signed a lease or not it is nothing but good.

If you have already signed without a vertical Pugh - long term - the royalty $'s could be very nice.

If you have not signed yet - have fun! (Ya, this is serious business -binding legal contract that is going to tie up up your land for maybe a 100 yrs -but what the heck have some fun w/the landman).

Just say "vertical Pugh" and stacked pays and sit back and enjoy.

Like throwing "holy water" on the devil, or the same look on his face like when Dorthy threw the water on the wicked witch of the west. (slight exaggeration).

Ok, enough fun. If nothing else, the stacked pays are a good negotiating point to get to higher bonus money and no deductions royalty payments.

Granted, these are most likely longer term plays but still have a lot of value. But to quote Rex in the Marcellus "Drilling efforts focused in this zone given economics and ability to also hold shallow acreage"

hold shallow acreage" - Hmmmmm, must be some value there.

 I have not signed yet - still lowballen me -land man will be back this week - we shall see.

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