Rex Energy Corporation Completes Sale, Nets $17.3 Million

Rex Energy Corporation announced that it has closed on the sale of its Southwestern Region assets for net cash proceeds of approximately $17.3 million, subject to any final closing adjustments. The sale to Adventure Exploration Partners, LLC of Midland, Texas consisted of properties in Texas and New Mexico, predominately located in the Permian Basin.

The sale of these non-core assets was part of Rex Energy’s strategic plan to focus their efforts on Marcellus Shale drilling projects in the Appalachian Basin and the Lawrence Field Alkali-Surfactant-Polymer (”ASP”) Flood Project development in the Illinois Basin.

Benjamin W. Hulburt, President and Chief Executive Officer of Rex Energy, said, “Given the current commodity prices and economic environment, I am very pleased with our team’s ability to successfully divest these non-core assets.” Hulburt continued, “Rex Energy is dedicated to maintaining a conservative balance sheet, and the cash generated from the sale of our Southwestern Region assets will be used to uphold this commitment as well as supplement our 2009 capital budget.”

KeyBanc Capital Markets, Inc. served as Rex Energy’s advisor in connection with the transaction

Natural Gas Oversupply and New Pipeline Capacity Promise Bonanza for Northeast Natural Gas Buyers

Top Mining News: This is the mining news on A new report from BENTEK Energy which examines the consequences of rapidly changing natural gas market conditions in the Northeast resulting from continuing increases in domestic production, new pipeline infrastructure and shifwww.miningtopnews.comts in the sources of natural gas imports. The original post of this article below is taken from www.miningtopnews.com

A new report from BENTEK Energy examines the consequences of rapidly changing natural gas market conditions in the Northeast resulting from continuing increases in domestic production, new pipeline infrastructure and shifts in the sources of natural gas imports. Just issued, Part 3 of BENTEK’s “Catch the Wave™” Market Alert series illustrates important Northeast market developments during Winter 2008-09 and describes how new drilling and completion technologies are changing the competitive landscape in the Northeast and across North America.

“It has been a long time since Northeast gas buyers have been faced with such a combination of attractive supply alternatives combined with highly complex market dynamics,” noted E. Russell (Rusty) Braziel, BENTEK managing director. “In just a few short weeks, the Rockies Express Pipeline will thrust Rockies producers into direct competition with suppliers from the Gulf and Midcontinent regions for Northeast market share. Production from those same regions continues to increase, even in the face of lower prices and falling rig counts. In the Gulf, production is growing so fast that it is threatening to exceed maximum outbound throughput capacity on all of the region’s major pipeline systems. Demand destruction and LNG imports remain wildcards. It is a lot of things to be hitting the market at the same time, but mostly good for natural gas buyers.”

U.S. gas production is expected to grow in 2009 despite the recession and drilling cut backs, as producers move drilling rigs to areas with much higher per well initial production rates, such as the Haynesville play located in northwest Louisiana and East Texas. This shift in capital deployment combined with the aggressive application of new drilling and completion technologies are offsetting the impact of a free-fall in the rig count, with the net result an expected 4% increase in production for 2009, according to the report.

“The application of new drilling technologies to unconventional resource plays in areas where the geology is well understood has resulted in extremely high well success rates and much larger reserves inventories,” said Braziel. “As a consequence, many of the traditional finding and development uncertainties in the E&P business are being replaced by risks generally associated with classical manufacturing economics, such as overcapacity, high inventories, and marginalized prices. This has important implications for the supply-demand balance over the long term.”

On the demand side, the BENTEK report sheds light on the apparent discrepancy between demand and pricing in the Northeast this winter. While the recession has resulted in some demand destruction, the impact has been muted by strong winter heating demand. Average Northeast demand is up about 4% this winter with peak demand soaring more than 35 Bcf/d (billion cubic feet per day) on January 16, 2009, compared to peaks of 28-32 Bcf/d during the previous four winters. In contrast, peak and average daily gas price premiums in the Northeast this winter have been significantly lower compared to last winter, with access to cheaper supplies due to pipeline expansions such Millennium-NE07 being the primary contributing factor. This development has important implications for the Summer of 2009 and beyond with the completion of Rockies Express and other pipeline projects.

“The other big factor is imports,” Braziel continued. “Imports from Canada are expected to continue decreasing as conventional production in the Western Canadian Sedimentary Basin declines. However, most of the decrease will take place at border crossing points in the Midwest and West, which will have a minimal effect on Northeast supply levels. Canadian imports averaged 10.7 Bcf/d in 2008, but are projected to decline slightly to average about 10.4 Bcf/d in 2009.”

With prices below $4.00/MMbtu (million British thermal units) and expected to trend lower, the report also casts doubt that the U.S. could end up being a major dumping ground for global LNG surpluses, at least in the short term. If LNG does show up, the most likely destinations are expected to be terminals on the Atlantic Seaboard and Atlantic Canada, not those on the Gulf Coast.

In addition to its “Catch the Wave™” Market Alert series, BENTEK offers the Northeast Observer™ to provide daily updates and a weekly summary of market developments and a comprehensive analysis of all market factors pertinent to the Northeast region. For more information about BENTEK’s “Catch the Wave™” Market Alert series or Northeast Observer™, go to www.bentekenergy.com or call BENTEK at 888-251-1264. Learn about these developments and more at BENTEK’s natural gas symposium in Houston, TX, June 2-4, 2009. For more information go to: www.bentekenergy.com/benposium.

ECCO Energy Signs Letter of Intent With Samurai Corp to Acquire 40 Producing Wells in Ohio

On December 31, 2008, ECCO Energy Corp. signed a letter of intent to purchase properties from Samurai Corp, Inc., including the working interests in the properties previously owned by Lake Fork Resources, LLC in Ohio and the M-J Oil Company, also in Ohio.

These acquisitions include 40 producing wells and multiple development drilling opportunities, as well as opportunities to increase production from currently producing wells. These wells are located in eleven counties in eastern Ohio. ECCO will operate all of the wells. There are multiple productive horizons, including the Clinton Sandstone, Ohio Shale, Oriskany Sandstone, Berea Sandstone and Marcellus Shale. Current net production is approximately 240 mcf and 23 barrels of oil per day.

ECCO plans to complete the transaction by the end of February 2009, and the effective date of the transaction will be December 31, 2008.

Sam Skipper, ECCO’s President, said, “This is a major acquisition for our company. It provides us with additional producing property with long life reserves. ECCO’s management team has identified 18 existing wells containing Marcellus Shale sands, and once recompleted, we feel the properties will significantly enhance current production with additional oil and gas volume.”

Brinx Announces First Well in the 2008-3 Program Intercepts 200 Feet of Gross Pay

Brinx Resources has announced that the first well in Ranken Energy’s 2008-3 drilling program, the Selman #1-21, was drilled and reached a total depth of 6842 feet on January 28, 2009.

Open logs were run on the well and indicate a gross pay interval with gas shows from 6046′-6051′ in the Gibson Sand and from 6054′-6234′ and 6444′-6460′ in the Viola Formation. Scattered minor shows were also present in the interval between the 6234′ and 6444′ The top of the Viola was found 47 feet structurally high to the nearest well that produced 577 million cubic feet of gas and 9,572 barrels of oil. Completion of the well should start within the next two weeks.

The 2008-3 program is composed of four 3-D seismically defined separate prospects with one exploratory well in three of the prospects and two in the fourth prospect. Targeted pay zones for each of the four prospects include the prolific Oil Creek and Bromide Sands, Viola Limestone, Deese Sandstone and Layton Sandstone. One of the exploration wells has very similar geology and structure to the Bromide sands in the successful Owl Creek field previously owned by Brinx.

The recent drop in drilling and completing costs within the oil and gas sector has encouraged Brinx to resume its exploration activities. It is anticipated that the successful wells in this program will lead to additional development wells that can be drilled when the market for oil and gas prices recover. These potential well locations and those that already have been identified on Brinx’s other two prospects, both of which are still producing economic quantities of oil and gas, should give Brinx ample locations to drill in the future.

Brinx Resources is an expanding exploration company focused on developing North American oil and natural gas reserves. The Company’s current focus is on the continued exploration and development of its land portfolio comprised of working interests in the Three Sand Project in Noble County, Oklahoma (40% interest); 5% working interest in the Ranken Energy’s 2008-3 program; and the Palmetto Point Project in Mississippi (8 to 8.5% interest). Brinx Resources is seeking to further develop its existing project through development or offset drilling and expand its portfolio to include additional interests North America.

CGX Energy Completes Corentyne 3D Seismic Program

CGX Energy Inc. announce that shooting of the 536 sq km 3D seismic survey on CGX’s 100% Corentyne Petroleum Prospecting Licence (PPL) has been completed. In the Georgetown PPL, in which CGX holds a 25% interest, the survey has been expanded by 200 sq km to 1,850 sq km. The Georgetown survey has been shot in parallel with the Corentyne and is expected to be completed after the New Year.

Kerry Sully, President & CEO stated, “CGX Energy’s share of the combined program is estimated to be $16 million, including this seismic. The Company’s Board of Directors has approved a capital program for the period ending September 2009 of $18 million. Additional items will include seismic interpretation, well drilling design and an environmental assessment study. These items will be funded by CGX from existing working capital that at the end of September 2008 was approximately $35 million.”

CGX Energy Inc. is a Canadian-based oil and gas exploration company focused on the exploration for oil in the Guyana basin. CGX is managed by a team of experienced oil and gas and finance professionals from Canada, USA and the UK. CGX is financed internationally and has shareholders worldwide.

Additional information on CGX Energy may also be examined and/or obtained through the internet by accessing CGX Energy’s website at www.cgxenergy.com

Particle Drilling Technologies Completes the Sale of Its Frac Pump

Particle Drilling Technologies, Inc. announced that it has completed the sale of its frac pump for $840,000. The frac pump was previously used as part of the Company’s particle injection system, but most recently was only utilized for test purposes at the Company’s flow-loop facility. The Company has recently leased a conventional tri-plex pump on a short term basis that is better suited for testing.

Particle Drilling Technologies, Inc. is a development-stage oilfield service and technology company commercializing its patented and patent-pending Particle Impact Drilling system. The company’s technology is designed to enhance the rate-of-penetration function in the drilling process, particularly in hard-rock environments. It is headquartered in Houston, Texas. For more information, visit: http://www.particledrilling.com

GAS DISCOVERY AT LUKAH-1X EXPLORATION WELL

The following statement was released by the company:

SINGAPORE PETROLEUM COMPANY LIMITED (REG. NO. 196900291N)

GAS DISCOVERY AT LUKAH-1X EXPLORATION WELL

SINGAPORE, 9 JUNE 2006 - Further to Singapore Petroleum Company Limited’s (”SPC”) (SPCS.SI: Quote, Profile, Research) announcement (SGXNET Announcement No. 87) on 10 May 2006, SPC is pleased to provide an update on the drilling of Lukah-1X exploration well (”Lukah-1X”) in the Kakap Production Sharing Contract (”Kakap PSC”).

Lukah-1X successfully tested natural gas and condensate over two sand intervals of 20 and 25 metres. The two intervals flowed at a combined rate of approximately 19.7 million standard cubic feet per day of natural gas and 2.8 barrels of condensate per day through a 64/64″ choke at wellhead pressure of 862 psi for a period of approximately five hours.

FINANCIAL IMPACT

The drilling will not have any material impact on the earnings per share and the net tangible asset per share of the SPC group of companies for the current financial year.

BACKGROUND

SPC is a regional oil and gas company with interest in oil and gas exploration and production, refining, terminalling and distribution, marketing and trading of crude and refined petroleum products. It is an associated company of Keppel Oil & Gas Services Pte Ltd, a wholly-owned subsidiary of Keppel Corporation Limited.

SPC holds a 15% interest in the Kakap PSC through its wholly-owned subsidiary, SPC Kakap Ltd, which in turn is a wholly-owned subsidiary of SPC Production Company Ltd. The Kakap PSC, which covers 2,000 square kilometres, is located in the West Natuna Sea of Indonesia and is 1,247 kilometres northwest of Jakarta, Indonesia. The Kakap PSC consists of two blocks, namely North Kakap and South Kakap. There are currently seven producing oil and gas fields in South Kakap.

© Reuters 2006. All Rights Reserved.

The Discovery of Oil and Gas Well by Cheal A7

Austral Pacific Energy Ltd. announce that the Cheal A7 well commenced production on Saturday, August 30, 2008.

Austral CEO and President Thompson Jewell said, “I am pleased to see the well on stream this quickly and performing as expected. The incremental production and revenue is a welcome sight.”

A7 has now been successfully tied into the Cheal Production Facility using a temporary connection. The well will be flowed through these temporary facilities for three months while the permanent installation is being planned.

As part of the planned production and testing procedures the well is being produced at 200 barrels of oil per day (bopd) with no water during the testing phase. There was no observed surface pressure decline measured during the first test period.

The initial testing indicates that the well is capable of a maximum flow rate in the range of 250-280 bopd. The optimum flow rate will be established over the coming weeks. The field’s current production rate is approximately 520 bopd.

Cheal A3X has been shut-in this week while the A7 well was brought into production as a result of a reoccurrence of the casing leak encountered earlier this year. A number of options are being reviewed for immediate remedial repair to return the A3X well to its 90 bopd rate while planning is underway to support a permanent repair towards the end of this year if required.

A number of short and medium term production enhancement projects are being investigated and implemented to further improve and maximize the value of the current Cheal field production. Two additional locations that could add both reserves and production have been prepared and further prospects on trend are being prioritized based on the results of the A6 and A7 drilling programme.

Cheal is a producing oil and gas field south of Stratford in onshore Taranaki, New Zealand. It is 69.5% owned by Austral, which is also field operator.

Austral Pacific is a listed independent oil and gas exploration and production company registered in Canada with corporate headquarters in Wellington, New Zealand. The Company has an interest in eight exploration and production permits totaling over 2.6 million acres in New Zealand. The Company’s primary assets are the Cheal Field, Kahili Field and Cardiff Field located onshore in the highly prolific Taranaki Basin on the North Island of New Zealand.

Oil & Gas Production in Nontechnical Language

Description
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