Attached files
file | filename |
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8-K - FORM 8-K - REX ENERGY CORP | d8k.htm |
EX-99.1 - PRESS RELEASE - REX ENERGY CORP | dex991.htm |
Rex
Energy Rex Energy
DJ Basin Niobrara Play
DJ Basin Niobrara Play
Tudor Pickering Holt Conference
Tudor Pickering Holt Conference
Denver, Colorado
Denver, Colorado
March 24, 2011
March 24, 2011
Rex Energy Corporation | 476 Rolling Ridge Drive | State College, PA 16801
P: (814) 278-7267 | F: (814) 278-7286
E: InvestorRelations@RexEnergyCorp.com
www.rexenergy.com
Together We Can Make A Difference
Exhibit 99.2 |
Area of
Rex Niobrara Activity
Paleogeography of North America: Niobrara Time
Paleogeography of North America: Niobrara Time
2 |
Introduction to the Denver Basin
Introduction to the Denver Basin
3 |
Vertical wells thru 1980s (58)
Horizontal drilling initiated in 1990, thru 2000 (91)
Silo Historic Field Production
Silo Historic Field Production
4 |
with
Amocos
attempts
at
deeper
zones;
plugged
back
&
completed
into
lower
Kn
(Ft.
Hayes);
later
completed
in
(B-C
intervals);
Afterward
the
B-C
zones
become
the
target.
Spacing
was
initially
on
160s
(approximately).
wells
drilled
from
1980-1989
(shown)
(highlighted
in
red;
within
what
turns
out
to
be
the
sweet
spot)
1980s
wells
were
fracture-stimulated:
oil/gelled
water
emulsions
w/
1-4
ppg
sand;
Kn
thought
to
be
water-sensitive
due
to
illite/kaolinite/smectite
clays
The red dot is a static reference point that
can be used to understand the areal
growth of the field after 20 years.
Silo Field Development
Silo Field Development
1980s
1980s
5
Silo
Field
discovery
began
in
1980
the upper Kn in 1984
Overall:
58 vertical
Two
vertical
wells
of
the
1980s
vintage
reached
cum
production
above
200
MBO |
91
horizontal wells drilled during the 1990s & 3 in the
2000s. Fourteen of the horizontals have cum production over 200 MBO
(pink) Wells
are
now
draining
~
640s.
Some
have
4.5
liners.
16 total wells achieved cum production in excess of 200 MBO
Horizontal wells are now completed with 30,000 bbl slickwater fracs and wax
balls as diverters (not modern multi-stage w/ huge volumes proppant)
58 verticals + 91 horizontals + 28 dry holes
= 177 total attempts as listed by IHS
Currently, there are only 41 active wells, 5 of which are verticals.
These 41 wells have produced 65% of the fields production.
Four horizontal wells exceeded 400 MBO
Silo Field Development
Silo Field Development
1990s -
1990s -
Present
Present
6 |
14 of 16
exceeding 200 MBO horizontals Probability Distribution of Cumulative
Production Probability Distribution of Cumulative Production
7 |
Deliberate
choke-back period in first 12-18 months
Well IPd at 290 BOPD!
EUR will exceed 555 MBO
Econ Limit defined by LOE
Life of 20-30 yrs
The LEMASTER-STATE 12-3H is the highest-ranking well in terms of cumulative
production. Drilled in 1992 with a lateral length of 4000 ft.
Distinct hyperbolic decline evident; dual-perm flow through fractured
micro-darcy matrix LeMaster State
LeMaster State
Best Well in Silo Field
Best Well in Silo Field
8 |
Vertical
Well Horizontal Well
Niobrara Production at Silo Field
Niobrara Production at Silo Field
9
100 BOPD
100 BOPD |
Niobrara
Production at Silo Field Niobrara Production at Silo Field
10
Cumulative Production Bubble Map:
Significant production in open fractures
And faults associated with a salt edge
From Sonnenberg and Weimer, 1993 |
Herrington #1 FMI Log Showing Chalk
Herrington #1 FMI Log Showing Chalk
Development and Fracture Orientation
Development and Fracture Orientation
11 |
EOG
Jake #02-01H W-DB-029(enlarged)
Salt
lumps
2D Seismic Line Through the EOG Jake
2D Seismic Line Through the EOG Jake
Area Showing Salt Outliers and Faulting
Area Showing Salt Outliers and Faulting
12 |
Salt
Lumps 3D Seismic Line Through East Silo Area
3D Seismic Line Through East Silo Area
Showing Salt Outliers and Faulting
Showing Salt Outliers and Faulting
13 |
Niobrara
Overview Niobrara Overview
~65,000 gross (45,000 net) acres
3 horizontal wells drilled (infill and Matrix Porosity
results)
DJ Basin Niobrara Summary
Thick Source Rock
300+ ft.
High total organic content (TOCs) of 2-10%
Strong matrix contribution from high porosity chalks
Production likely influenced by faults and fractures
Mature over large areal extent
Expected well costs of $3.5 -
$4.2 MM
DJ Basin
Rex Energy
Silo State 41-22H
IP: 67 BOE/d
Rex Energy
Herrington Farms 1H
IP: 202 BOE/d
1. Assumptions
based
on
full
development
program.
Individual
well
results
may
vary
significantly.
Not
proved.
See
Hydrocarbon
Volume
Estimates
on
page
3.
14
Silo
Field
Rex Energy
Shapley 14-45H
Drilling
REX
Leasehold
Rex Energy
BJB #1H Appears
Non-Commercial |
Niobrara
Challenges and Opportunities Niobrara Challenges and Opportunities
15
Challenges
Learning Curve Has Been Steep:
Lost Circulation Issues while
maintaining well control o
Need to drill underbalanced without damaging the formation with LCM
Normally Pressured to
Slightly Under Pressured Reservoir o
Wells will not flow-back for extended periods of time/Need Artificial Lift
Frac and Completion Designs
o
Packer/Sleeve completions dictate sand control issues
o
Extensive clean-out issues /Emulsion issues
Opportunities
Pick Better Locations thru
3-D
Get thru the turn and
horizontal leg quicker Look to put the wells on pump ASAP
Completion
Designs-
Continued
Optimization
of
frac
designs
o
Complete with dual sleeves that open and close to let the well come in
Natural o
Frac after initial decline rate is observed
o
Plug and perf
o
Fluid types
o
Sand Concentration |