Range updates gas reserve data

Posted February 9, 2011


Business briefs

FORT WORTH, Texas - Range Resources Inc. on Tuesday announced Tuesday that its unproved natural gas resoruces potential at year-end 2010 was estimated at 35 to 52 trillion cubic feet, up from 24 to 32 Tcfe at year-end 2009. The Forth Worth, Texas drilling and exploration company, which has its Appalachian Share divisional headquarters in Southpointe, said that with its year-end 2010 proved reserve base of 4.4 Tcfe, it has the opportunity to grow its proved reserves by roughly 10 times.

The company said the year-over-year increase in unproved resource potential was attributed to several factors, noting that in Marcellus Shale its resource potential has increased to 20 - 31 Tcfe, due to higher per-well reserves. It said that for the first time, it was able to include unproved resource potential for the Upper Devonian Shale in Appalachia. The Upper Devonian Shale formation lies above the Marcellus Shale on Range's acreage, primarily in Southwestern Pennsylvania. The company said its estimate of its Upper Devonian acreage places unproved resource potential of 10 - 14 Tcfe.

The remainder of the resource potential increase is attributable to the Nora Area in Virginia and the Permian and Midcontinent areas where Range has properties encompassing more than 560,000 net acres.

As previously reported, the company's proved reserves as of Dec. 31, increased 42 percent to 4.4 Tcfe. Finding and development costs from all sources, including acquisitions, acreage and all price and performance revisions, averaged 72 cents per mcfe.

The company noted that with its focus on drilling in the liquids-rich southwest portion of the Marcellus Shale play, its reserve mix is changing. At year-end 2009, its proved reserve volumes were 84 percent natural gas, 10 percent natural gas liquids and 6 percent crude oil. At year-end 2010, the mix had changed to 80 percent natural gas, 17 percent natural gas liquids and 3 percent crude oil.

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