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Range Accelerates Drilling Program In Horizontal Mississippian Play

Updated Decline Curve Information –

Based on its production results to date, Range has updated its decline curves for the play. The updated production results reaffirm Range’s estimated 600 Mboe estimated ultimate recovery (“EUR”) per well for its 2012 program wells with greater than 3,500 foot laterals. Range has posted updated zero-time plots of actual production to date on its website which support the decline curves and reserve estimates. To provide more detailed information, Range has included decline curves for each product component – oil, NGLs and natural gas. Given the characteristics of a depletion drive reservoir, initial oil production rates are expected to approach 50% of production but are expected to decline faster over time than the associated natural gas and NGL production. Therefore, the decline curves are anticipated to be different for each product component which is consistent with historical results. For its acreage position, Range projects that the EUR per well will approximate one-third oil, one-third NGLs, and one-third natural gas.

Range has turned 18 wells to sales in its 2012 drilling program with an average 24-hour peak rate to sales of over 500 boe per day. Ten of those wells have been online for 30 days or more and the 30-day average rate for these ten wells is over 390 boe per day. These results are consistent with the Company’s forecasted 600 Mboe EUR type curve for these wells. The average lateral of the 18 wells turned to sales this year is approximately 3,800 feet with an average of 19 frac stages.

Based on the updated decline curves and estimated reserves of 600 Mboe, Range projects a well level rate of return of 96% based on a flat $80.00 WTI oil price and a flat $4.00 NYMEX natural gas price. This projected return is based on expected drilling and completion costs of $3.4 million per well (which includes $200,000 for water disposal infrastructure) and includes all estimated costs for gathering, pipeline and processing.

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