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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Permalink Reply by Trapper on September 7, 2014 at 2:42am

Jeff, I see where some in Butler County have got letters also. What Twp./borough are you in? I am right on the line here in New Beaver,Lawrence and haven't got my letter as of yet.

I work in Zelienople and have co workers leased to Rex around Evans City and they know others who are with Rex as well. I haven't heard any bad about them and they are major drillers in that area and serious about it. Markwest is partnered with them to provide treatment to remove liquids from their gas production. Markwest's treatment facility is growing and slated to grow more in the next couple of years to handle Rex's newly acquired Shell leaseholds. This info is viewable on Markwest's and Rex's websites. I can only think this is good news for us involved in this deal. Hoping for the best!

Permalink Reply by Barry D on September 7, 2014 at 3:02am

Jeff,

Actions speak louder than words.

Rex is partnered with Markwest. Markwest has announced the expansion of their plant in Butler County.

Rex has obtained additional acreage for development.

These actions would lead me to believe that Rex is planning on major development.

Just my opinion.

Permalink Reply by James Foster on September 7, 2014 at 3:53pm
Rex has wells in Carroll County OH ... three that I know of and have seen. They had a death of a worker at one of these wells. It was a careless safety mistake by one worker that injured him but killed his partner. He failed to use a safety device when they were moving pipe and it swung free and hit them. Otherwise they seem to have good record here. Pads were well built and roads maintained. They used Patterson UTI here to drill as has Chesapeake who also uses their own subsidiary nomac.

I am not sure if SWEPI and the division of Shell that would build a cracker have much to do with each other. Exploration and production of gas etc are usually completely separate divisions and sometimes separate companies. Also retail sales like at a gas station is often separate. This avoids them selling to themselves at falsely low prices then selling to others at high prices. You can tell if they are public and have unique stock symbol. I have read some about how shell is set up but dont remember exactly.

If you check out wiki it explains better than I how Royal Dutch Shell and Shell Oil Company are organized. Completely separate for many years but in the 90's rds did purchase stock in shell oil and shell canada.
Permalink Reply by My Crackers on September 8, 2014 at 9:39am

Just received my letter today from Rex. I'm in Scott Township, Lawrence Country

Permalink Reply by Chris Crawley on September 8, 2014 at 9:53am

Me too, Shenango Twp, Lawrence Co.

Permalink Reply by Trapper on September 8, 2014 at 10:23am
Me too in beautiful New Beaver Borough!
(Lawrence County PA)
Permalink Reply by Terry W. on September 8, 2014 at 12:55pm

Me too, in Venango Twp, Northern Butler county.

Permalink Reply by Rich on September 8, 2014 at 2:44pm
Hey guys! Here in little beaver and no letter yet as of 8/8/2014. But they have been talking to two neighbors about signing new contracts!
Permalink Reply by MARK LANDIS on September 9, 2014 at 5:34am

you mean 9/8/2014?

Permalink Reply by Rich on September 9, 2014 at 6:53am
Yep sorry 9/8/2014
Permalink Reply by Klix on September 9, 2014 at 12:36am

Just got our letter from REX as well. Washington Twp. Northern Butler Co.  They are very active her in Butler. I drive by 4 of their well sites on my way to work everyday. All 4 sites are either complete or nearing completion and there are pipelines in the ground already for each. From what I've seen whenever they drill, the pipeline isn't far behind.

Permalink Reply by Jon Pringle on September 9, 2014 at 2:46am

I hope REX gets going in Scott Twnshp. Have 2 year left on 5 yr lease signed with SWIP. Fire up the drill rigs and bring it on!!

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