Courtesy of Benzinga.
Company exceeds first quarter production high case guidance by 1%
First quarter daily production rates increased 23% over the fourth quarter of 2011
Company spud its first Ohio Utica well in Carroll County, OH
Update on Pennsylvania impact fee
Rex Energy Corporation (Nasdaq: REXX) today announced its first quarter 2012 production results, the commencement of drilling operations on its first horizontal Ohio Utica well in the Warrior Prospect and an update on the recently adopted Pennsylvania impact fee.
Production Update
Rex Energy exceeded the high end of its first quarter production guidance of 60.0 MMcfe/d by approximately 1%, with an average daily production rate of 60.7 MMcfe/d. This is an increase of approximately 23% over the fourth quarter of 2011 and an increase of 120% over the average daily production rate of the first quarter of 2011. This marks the sixth consecutive quarter that the company has achieved double digit production growth. Oil and natural gas liquids accounted for 26% of the total net production for the quarter.
After the effects of cash settled derivatives, realized natural gas prices were $3.72 per Mcf, realized oil prices were $98.08 per Bbl and realized natural gas liquids prices were $48.98 per Bbl, which was approximately 48% of the NYMEX quoted average price of oil for the quarter.
Operational Update
Appalachian Basin – Warrior Prospect, Carroll County, Ohio
Rex Energy recently spud its first horizontal well in the Warrior Prospect, located in Carroll County, Ohio. Drilling operations on the Brace 1H, which is targeting the liquids rich window of the Utica Shale, began on April 13, 2012. The company anticipates completion results to be available during the second quarter 2012 conference call in August. Additionally, Rex Energy plans to drill an additional two horizontal Utica Shale wells in the Warrior Prospect in 2012. The Company has closed on all 15,000 net acres in Carroll County that were previously announced and continues to actively lease in the region.
Pennsylvania Impact Fee
During the first quarter of 2012, Pennsylvania state legislators approved Act 13 instituting an impact fee on producers of unconventional natural gas. The legislation, which covers the majority of Rex’s Marcellus Shale acreage, imposes an annual fee for a period of fifteen years on each well drilled. Unconventional gas wells spud before the fee was imposed will be considered to be spud in 2011 for purposes of determining the fee
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