Niobrara Shale

Rex Energy Updates Niobrara Shale Development Program

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.

Rex Energy Reports On Niobrara Drilling Program

Rex Energy (REXX) released an operational update on its operations in the Niobrara Shale.  The company has acreage in Colorado and Wyoming.  

Rex Energy said that the Herrington 41-26H well had an initial production rate of 202 barrels of oil equivalent (BOE) per day, composed of 173 barrels of oil and 175,000 cubic feet per day of natural gas.  The company estimates the estimated ultimate recovery (EUR) from the Herrington 41-26H well at 125,000 BOE.

Rex Energy said that the Silo State 41-22H well had an initial production rate of 67 BOE per day, composed of 54 barrels of oil and 78,000 cubic feet per day of natural gas.  This was the company’s first well drilled into the Niobrara Shale.

Rex Energy also reported that the BJB 34-14H Niobrara Shale well was completed and appears to be non commercial. All three of these Niobrara wells were drilled in the Silo Field, located in Laramie County, Wyoming.

Rex Energy is currently drilling the Shapley 14-45H into the Niobrara on the company’s acreage in Weld County, Colorado. 

Rex Energy Updates Niobrara Shale Activity

Rex Energy (REXX) issued an operations update on its development activities on its properties that are prospective for the Niobrara Shale. The company has 40,000 net acres exposed to this play in the Denver Julesburg Basin.

Rex Energy is conducting completion operations on the Silo State 41-22 well, the company’s first Niobrara Shale well. The Silo State 41-22 well is located in the Silo Field in Laramie County, Wyoming. The company said that it had problems with the completion and does not have any production figures to release yet.

Rex Energy has started drilling the horizontal lateral on the Herrington Farms 1H well, the company’s second Niobrara Shale well. The company expects to reach total depth on this well shortly and start completion operations in November 2010. Rex Energy has permits approved on four other Niobrara Shale wells.