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Friday, June 28, 2013

Latest Gulfport Energy Well Numbers Further Hit-or-Miss Perception of the Utica Shale

From The Motley Fool:
If investors have learned one thing about the Utica Shale, it's that the play is really becoming hit-or-miss. That being said, when a company hits, it's usually a really big hit. That gives both producers and investors hope that the play will turn out to be just fine.
We saw an example in Rex Energy's  (NASDAQ: REXX  )  recent Utica well results. One of the wells produced really good initial production, while a second well underwhelmed. However, just as in baseball, hitting a few home runs can really help win the game. 
Rex's first well, the G. Graham 1H, produced an average 30-day sales rate of 1,256 barrels of oil equivalent per day if full ethane recovery is assumed. The product mix was 46% natural gas liquids, 33% natural gas, and 21% condensate. This well, which was drilled to a depth of 12,098 feet with lateral length of about 3,973 feet, was completed using the company's "Super Frac" completion technique. That's important to remember, especially when looking at its other well which used a different technique.
That second well, the G. Graham 2H, performed so far below the company's expectations that Rex didn't provide investors with the sales numbers. This well was completed with a third-party proprietary completion technique, and Rex is reviewing the results. Rex did make one thing clear: It will only be using its "Super Frac" completion technique going forward. Overall, Rex remains very positive on the Utica and sees the potential for 110 additional wells in its northern Utica prospect. If these wells can produce at or above expectations, it has the potential to create a lot of value for Rex's investors.
Read the whole article here. 

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