RANGE RESOURCES CORPORATION (NYSE: RRC) announced today that its proved reserves as of December 31, 2012 increased 29% to a record high of 6.5 Tcfe. Range replaced 773% of production in 2012 from drilling (including proved performance revisions). Finding and development costs from all sources (including acreage and price and performance revisions) are expected to average $0.87 per mcfe, based on preliminary unaudited results for 2012. Drill bit development costs are expected to average $0.68 per mcfe.
For 2012, Range added 1,767 Bcfe of proved reserves through the drill bit. Positive performance revisions added 366 Bcfe despite the Company removing 67 Bcfe of proved undeveloped dry gas reserves that are no longer expected to be drilled within the next five years under current development plans as the Company continues to redirect capital to the Marcellus Shale, the Horizontal Mississippian oil play and other liquids-rich areas of the Company’s portfolio. Price revisions reduced proved reserves by 257 Bcfe. During the year, the Company sold 149 Bcfe of proved reserves. No reserves were added through purchases as the Company did not have any proved property acquisitions in 2012. Production for 2012 totaled 276 Bcfe.
Year-end 2012 proved reserves by volume were 74% natural gas, 22% natural gas liquids and 4% crude oil. Crude oil and NGL reserve volumes increased 64%, while natural gas reserve volumes increased 20%. The percentage of reserves in the proved undeveloped category declined to 47% at year-end 2012, as compared to 52% at year-end 2011. At year-end 2012, Range recorded, on average, a modest 1.2 offset Marcellus drilling locations to its proved undeveloped reserves for each of its proved developed wells in the play. As of year-end 2012, approximately 10% of Range's Marcellus acreage was classified as proved reserves. Given the results to date of Range and other operators with over 2,000 wells drilled around Range’s acreage, Range believes that substantially all of its Marcellus acreage is highly prospective. In regard to the Utica and Upper Devonian Shales, Range has drilled successful wells in both horizons and will continue to drill additional wells and monitor industry activity. However at year-end 2012 as in 2011 and 2010, Range did not include any Utica or Upper Devonian locations as proved undeveloped reserves.