Rex Energy DJ Basin Niobrara Play Tudor Pickering Holt Conference Denver, Colorado March 24, 2011 Together We Can Make A Difference Rex Energy Corporation 476 Rolling Ridge Drive State College, PA 16801 P: (814) 278-7267 F: (814)…
Paleogeography of North America: Niobrara Time Area of Rex Niobrara Activity 2
Introduction to the Denver Basin 3
Silo Historic Field Production BBL / mo Vertical wells thru 1980s (58) Horizontal drilling initiated in 1990, thru 2000 (91) 4
Silo Field Development 1980s 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 discovery began in 1980 with Amocos attempts at deeper zones; plugged…
Silo Field Development 1990s - Present 91 horizontal wells drilled during the 1990s & 3 in the 2000s. 16 total wells achieved cum production in excess of 200 MBO Fourteen of the horizontals have cum production over 200 MBO (pink)…
Probability Distribution of Cumulative Production 14 of 16 exceeding 200 MBO horizontals 7
LeMaster State Best Well in Silo Field 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…
Niobrara Production at Silo Field Vertical Well Horizontal Well 100 BOPD 100 BOPD 9
Niobrara Production at Silo Field Cumulative Production Bubble Map: Significant production in open fractures And faults associated with a salt edge From Sonnenberg and Weimer, 1993 10
Herrington 1 FMI Log Showing Chalk Development and Fracture Orientation 11
2D Seismic Line Through the EOG Jake Area Showing Salt Outliers and Faulting W-DB-029(enlarged) EOG Jake 02-01H Salt lumps 12
3D Seismic Line Through East Silo Area Showing Salt Outliers and Faulting Salt Lumps 13
Niobrara Overview 65,000 gross (45,000 net) acres 3 horizontal wells drilled (infill and Matrix Porosity DJ Basin results) Silo DJ Basin Niobrara Summary Field Rex Energy BJB 1H Thick Source Rock 300+ ft. Appears Non-…
Niobrara Challenges and Opportunities 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…