Rex Energy Corporation (REXX) is an independent oil and gas company operating in the Illinois Basin, the Appalachian Basin and the southwestern region of the United States. The company pursues a balanced growth strategy of exploiting its sizable inventory of lower-risk developmental drilling locations, pursuing its higher-potential exploration drilling and enhanced oil recovery projects, and actively seeking to acquire complementary oil and natural gas properties.
The company announced the results of its alkali-surfactant-polymer (“ASP”) radial coreflood analysis of the Bridgeport Sandstone in Lawrence Field. The independent technical consultant, Surtek, stated their analysis of the radial corefloods demonstrated that oil recoveries of up to 24% of the original oil-in-place can be recovered through the injection of the ASP chemical solution. In a previous announcement, similar tests conducted by Surtek for the Cypress Sandstone within the field showed oil recoveries of up to 21% of the original oil-in-place.
Rex Energy also announced that it has closed on the acquisition of approximately 4,400 gross (4,100 net) acres in Pennsylvania, which the company believes are prospective for the Marcellus Shale unconventional natural gas play.
Benjamin Hulburt, chief executive officer, said, “We’re very pleased that these laboratory results on the Bridgeport Sandstone are further evidence to support our assumptions on the potential of the ASP process in our Lawrence Field. The company remains on schedule to begin chemical injection in our two ASP pilot tests of the Bridgeport and Cypress Sandstones in the Lawrence Field during the 2nd quarter of 2008.”
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