RANGE RESOURCES CORPORATION (NYSE: RRC) today provided an update
regarding the natural gas processing and pipeline infrastructure status
of its Marcellus Shale play in Appalachia. In 2008, Range entered into
an agreement with MarkWest Energy Partners L.P. (NYSE: MWE) to develop
certain gas processing and pipeline infrastructure in Pennsylvania. In
October 2008, the first phase of the infrastructure was completed, which
included a 30 Mmcf per day capacity refrigeration natural gas processing
plant, three compressor stations and approximately 25 miles of pipelines
in southwestern Pennsylvania. The second phase of the infrastructure
includes a cryogenic natural gas processing plant with an additional 30
Mmcf per day of processing capacity, along with three additional
compressor stations and 20 additional miles of gathering and pipelines.
The cryogenic plant has been completed and is currently undergoing
initial start up. In combination with the refrigeration plant, the
cryogenic facility now brings Range’s total processing capacity in
southwestern Pennsylvania to 60 Mmcf per day.
Once the initial start up of the cryogenic plant is completed in the
coming weeks, the plan is to divert the natural gas flowing to the
refrigeration plant to the cryogenic plant. The objective is to fill the
cryogenic plant as soon as practical, since the cryogenic plant is
capable of extracting a larger portion of the natural gas liquids from
the high Btu Marcellus gas in southwest Pennsylvania. Once the cryogenic
plant is fully loaded, the next step will be to turn on previously
drilled Marcellus wells to the expanded pipeline system. As additional
production is added, such production will then be processed through the
refrigeration plant. Range will be systematically tying in new wells and
anticipates the refrigeration and cryogenic plants to reach full
processing capacity during the third quarter. Range currently has 15
Marcellus wells in various stages of completion, waiting to be turned to
production.
The third phase of the infrastructure will be to add an additional 20
Mmcf per day of refrigeration capacity by the end of September, which
will increase total processing capacity to 80 Mmcf per day. Also in
process is the construction of a 120 Mmcf per day cryogenic facility
expected to be fully operational in January 2010. Simultaneously,
additional compression and pipelines are being added as Range continues
to drill new Marcellus Shale wells throughout 2009.
Commenting on the announcement, John Pinkerton, Range’s Chairman and
CEO, said, "We commend MarkWest for getting the first cryogenic plant up
and running on schedule. Given the harsh winter weather this year in
southwest Pennsylvania, this was terrific performance on MarkWest’s
part. During the second quarter, we will be turning additional wells to
production as planned. While still early in the development phase of the
play, we are encouraged with the progress being made by our team. The
infrastructure expansion is on schedule, we continue to drill
high-quality wells, to optimize the cost of drilling and completing
wells and our production is increasing. Most importantly, this keeps us
solidly on track to exit 2009 at our Marcellus production target of 80
to 100 Mmcfe per day net. With the completion of the cryogenic plant at
the end of this year, we will be well-positioned to continue to grow our
Marcellus production in 2010.”
RANGE RESOURCES CORPORATION (NYSE: RRC) is an independent oil and
gas company operating in the Southwestern, Appalachian and Gulf Coast
regions of the United States.
Except for historical information, statements made in this release,
including those relating to anticipated production, capital
expenditures, the number of wells to be drilled, anticipated timing of
construction and commencement of operation of new facilities 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.
