RANGE RESOURCES CORPORATION (NYSE: RRC) today announced that it
has achieved a significant milestone in the development of the Marcellus
Shale formation in Pennsylvania, as its net production from the
Marcellus Shale has reached 100 Mmcfe per day. This represents almost a
four-fold increase over this time last year and represents the high end
of Range’s 2009 production target of 80 to 100 Mmcfe net per day.
Range’s Marcellus Shale production target exit rate for 2010 is 180 to
200 Mmcfe net per day. Given the significant progress made in 2009, in
all phases of the development process, Range has extended its forecast
to include a 2011 exit rate from the Marcellus Shale of 360 to 400 Mmcfe
net per day. It is important to emphasize that all the production
results and targets referred to above are net to Range’s interest and
exclude production attributable to landowners’ royalty interests and
third-party working interests.
Commenting on the announcement, Jeff Ventura, Range’s President and
Chief Operating Officer, said, "We are extremely pleased with the
progress of our Marcellus Shale team. They have quadrupled Marcellus
production in 2009 and continue to optimize drilling and completion
techniques. As a result, our per-well production rates continue to
improve, while costs continue to decline. We are well-positioned to ramp
up our Marcellus production at low cost.”
Range entered 2009 running four rigs in the Marcellus Shale play and
will end the year with eleven rigs, including both horizontal and
vertical rigs. Range anticipates exiting 2010 with 16 rigs in the
Marcellus, increasing to 24 by year-end 2011. Additionally, Range has
completed the drilling of two horizontal wells in Lycoming County,
Pennsylvania, in the northeastern portion of the play. Completion
operations have commenced on the first of these two wells.
Commenting on the announcement, John Pinkerton, Range’s Chairman and
Chief Executive Officer, said, "With the wells drilled by Range and the
industry, we believe that approximately 390,000 net acres of Range’s
large leasehold in the southwestern portion of the play has been
materially de-risked. Our Marcellus team is continuing to delineate our
sizeable acreage position in the northeastern part of the play. In
addition, we are testing additional shale formations, above and below
the Marcellus. It’s becoming more and more clear that the Marcellus
Shale will likely become a very large natural gas field. This is a game
changer for Range and its shareholders, for Pennsylvania and energy
consumers. According to a study by Penn State University, the Marcellus
Shale has the potential to create 98,000 jobs and to contribute $14
billion to Pennsylvania’s economy in 2010. All of us at Range are proud
to have pioneered the Marcellus Shale and believe it is a shining
example of the private sector working together with public agencies to
create a long-lasting stimulus. Importantly, clean-burning natural gas
produced in the U.S. can reduce our dependence on foreign oil, create
jobs, strengthen our economy and dramatically reduce carbon emissions.”
RANGE RESOURCES CORPORATION (NYSE: RRC) is an independent oil and
gas company operating in the Southwestern and Appalachian regions of the
United States.
Except for historical information, statements made in this release,
including those relating to anticipated production, capital
expenditures, anticipated cost reductions, the number of wells to be
drilled, future realized prices, net unrisked reserve potential and
anticipated financial results are forward-looking statements as defined
by the Securities and Exchange Commission.
These statements are
based on assumptions and estimates that management believes are
reasonable based on currently available information; however,
management’s assumptions and the Company’s future performance are
subject to a wide range of business risks and uncertainties and there is
no assurance that these goals and projections can or will be met.
Any
number of factors could cause actual results to differ materially from
those in the forward-looking statements, including, but not limited to,
the volatility of oil and gas prices, the costs and results of drilling
and operations, the timing of production, mechanical and other inherent
risks associated with oil and gas production, weather, the availability
of drilling equipment, changes in interest rates, litigation,
uncertainties about reserve estimates, and environmental risks.
The
Company undertakes no obligation to publicly update or revise any
forward-looking statements.
Further information on risks and
uncertainties is available in the Company’s filings with the Securities
and Exchange Commission, which are incorporated by reference.
