US-based MarkWest Utica, a joint venture of MarkWest Energy Partners and The Energy and Minerals Group (EMG), has signed an agreement with Rex Energy to provide gathering, processing, fractionation and marketing services in the Utica Shale.
The company has about 4,100 net acres in Rex Energy’s Warrior South Prospect, where it has drilled and completed three wells.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Plans are currently underway to put the wells into sales once the related infrastructure is ready, as the wells have been closed since their completion.
Rex Energy is planning to drill and complete four additional wells, as well as put into service seven wells in the Warrior South Prospect.
MarkWest Utica plans to begin gathering and processing Rex’s liquid-rich gas production in June 2013.
The company is also constructing an extensive gathering system, two large-scale processing complexes and a C2+ fractionation and marketing complex in the beginning of 2014, to support Rex and other Utica producers.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe fractionation facility will also be linked to MarkWest’s extensive NGL infrastructure by an NGL pipeline in the Marcellus Shale and to its Houston, Pennsylvania complex.
The large-scale and fully-integrated midstream system will provide flexibility and redundancy to Rex and other producer customers, who will operate in the core liquids-rich area of the Utica Shale.
MarkWest chairman, president and CEO Frank Semple said that Rex will develop their highly-prospective acreage in the Utica Shale.
"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," Semple added.
Rex Energy CEO Tom Stabley said that MarkWest’s broad midstream experience will help the company to develop the Warrior South prospects.
Image: Utica Shale. Photo: Courtesy of USGS.
