Range’s Future Plans –
Based on its current plans, Range expects to run a five-rig program in 2013, increasing to ten rigs in 2014 and 15 rigs in 2015. This multi-year rig program is projected to hold substantially all of the Range acreage currently within its lease terms. The five-rig 2013 program is expected to drill 68 wells, consisting of 51 producing wells and 17 water disposal wells. Range expects to continue testing other completion and drilling techniques to improve on the current results while varying lateral lengths and the number of frac stages during the program.
Range believes that all necessary infrastructure needed is in place to allow for the planned growth in 2013. Contracts are in place with two gathering and processing companies covering five facilities in the area with sufficient capacity for the expected growth in natural gas liquids and natural gas. Range is targeting one disposal well for each five to eight producing wells drilled. Currently, the Company believes its planned water disposal facilities will handle all of the produced water required for the 2013 program. In addition, Range is moving forward with plans to recycle produced water for fracture stimulations.
Range has posted a presentation to its website entitled “Horizontal Mississippian Update” with projected decline curves by product to show the average estimated ultimate recovery from its wells using its current well design along with zero-time production plots which support our EUR estimates from these wells. Please review the presentation on Range’s website www.rangeresources.com.RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading independent oil and natural gas producer with operations focused in Appalachia and the southwest region of the United States. The Company pursues an organic growth strategy targeting high return, low-cost projects within its large inventory of low risk, development drilling opportunities. The Company is headquartered in Fort Worth, Texas. More information about Range can be found at www.rangeresources.com and www.myrangeresources.com. Except for historical information, statements made in this release such as expected rates of return, estimated ultimate recovery volumes, expected high returns, expected low-costs, expected per share growth, expected geological results, expected de-risking of the play, expected future spacing units, expected future decline rates, expected infrastructure availability, expected improvement in well performance, expected greater capital efficiency, expected addition of future value for shareholders, expected amount of future capital spending, expected timing, methods utilized and number of rigs related to drilling operations and expected timing of infrastructure improvements are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management’s assumptions and Range’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 results of hedging transactions, 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. Range undertakes no obligation to publicly update or revise any forward-looking statements. Estimated ultimate recovery, or “EUR,” refers to our management’s internal estimates of per well hydrocarbon quantities that may be potentially recovered from a hypothetical future well completed as a producer in the area. These quantities do not necessarily constitute or represent reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System or the SEC’s oil and natural gas disclosure rules. Our management estimated these ultimate recoveries based on our previous operating experience in the given area and publicly available information relating to the operations of producers who are conducting operating in these areas. Actual quantities that may be ultimately recovered from Range's interests may differ substantially. Factors affecting ultimate recovery include the scope of Range's drilling program, which will be directly affected by the availability of capital, drilling and production costs, commodity prices, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals, field spacing rules, recoveries of gas in place, length of horizontal laterals, actual drilling results, including geological and mechanical factors affecting recovery rates and other factors. Estimates of ultimate recoveries may change significantly as development of our resource plays provides additional data. In addition, our production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant commodity price declines or drilling cost increases. Further information on risks and uncertainties is available in Range’s filings with the Securities and Exchange Commission (“SEC”), which are incorporated by reference. Investors are urged to consider closely the disclosure in our most recent Annual Report on Form 10-K, available from our website at www.rangeresources.com or by written request to 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102. You can also obtain this Form 10-K by calling the SEC at 1-800-SEC-0330.
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