Rex Energy (REXX) issued an update on its Niobrara Shale operations during the first quarter of 2011. The company has a 56,000 gross or 39,000 net acre position in the Denver Julesburg Basin in Wyoming and Colorado.
Rex Energy recently completed an analysis of its 3D seismic survey in the East Silo area in Laramie County, Wyoming. The company believes that the results indicate “a high degree of natural fracturing associated with faulting” and that this will lead to higher estimated ultimate recoveries on wells on its properties.
Rex Energy obtained permits to drill two wells in the East Silo area and is currently drilling the Steege 11-31H well.
Rex Energy also conducted a similar analysis on a seismic survey done on the West Silo area and decided to let 4,016 acres of leasehold expire. The company recorded a $5 million impairment charge during the quarter due to this action.
Rex Energy has acreage in Colorado and recently reached total depth on the Shapley 14-45H Niobrara well in Weld County. The company was able to convert a 5,200 net acre lease from term to held by production by drilling the Shapley 14-45H well.