MarkWest, Rex Energy Sign Utica Shale Development Contract (USA)

MarkWest Utica EMG, a joint venture between MarkWest Energy Partners and The Energy and Minerals Group (EMG), announced definitive agreements with Rex Energy Corporation to provide gathering, processing, fractionation, and marketing services in the Utica Shale.

In Rex Energy’s Warrior South Prospect, the company holds approximately 4,100 net acres. To date, the company drilled and completed three wells in the Warrior South Prospect. These wells have been shut-in since their completion and will be placed into sales once the related infrastructure is in place. In 2013, Rex Energy plans to drill and complete four additional wells and place into service seven wells in the Warrior South Prospect.

MarkWest Utica EMG expects to begin gathering and processing Rex’s liquid-rich gas production in approximately June of this year. To support Rex and other Utica producers, MarkWest Utica EMG is constructing an extensive gathering system, two large- scale processing complexes and a C2+ fractionation and marketing complex by early 2014.

When completed, MarkWest Utica EMG and MarkWest will have the largest processing and fractionation capacity in the Utica Shale. The fractionation facility will also be connected by an NGL pipeline to MarkWest’s extensive NGL infrastructure in the Marcellus Shale and to its Houston, Pennsylvania complex, the largest fractionation and marketing facility in the Northeast. The large-scale and fully-integrated midstream system will provide significant flexibility and redundancy for Rex and other producer customers operating in the core liquids-rich area of the Utica Shale.

“We are excited to further expand our relationship with Rex as they develop their highly-prospective acreage in the Utica Shale,” said Frank Semple, Chairman, President and Chief Executive Officer of MarkWest. “Rex is a proven operator with extensive experience in the development of unconventional resource plays and this agreement further supports the build out of our midstream infrastructure in the Utica Shale.”

“We are pleased to build on our already strong relationship with MarkWest as we develop our Utica Shale acreage,” said Tom Stabley, Chief Executive Officer of Rex Energy. “MarkWest’s extensive midstream experience will enable Rex Energy to further develop the value of our Warrior South prospects. Working together, we will continue to advance the responsible development of Rex Energy’s acreage in the Utica Shale.”

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LNG World News Staff, February 15, 2013; Image: usgs.gov