RANGE RESOURCES CORPORATION (NYSE: RRC)
announced today that its estimated unrisked unproved resource potential (“unproved resource potential”) as of December 31, 2012 increased to 48 – 68 Tcfe, up from 47 – 66 Tcfe at year-end 2011. The year-end 2012 unproved resource potential includes 35 – 46 Tcf of natural gas and 2.3 – 3.5 billion barrels of NGLs and crude oil. Of the total year-end 2012 unproved resource potential, 54% is attributable to the Marcellus Shale with the remaining 46% attributable to other formations in Appalachia, the Midcontinent and West Texas. Range previously announced that its year-end 2012 proved reserves were 6.5 Tcfe. Based on the mid-point of the unproved resource potential, Range has the opportunity to grow its proved reserves almost 9 times. As a result of its development activity, Range has moved 4.7 Tcfe of unproved resource potential to proved reserves over the last three years. No unproved resource potential estimates were assigned to the Company’s wet or dry Utica acreage. The estimated unproved resource potential assumes full ethane extraction.
Commenting, Jeff Ventura, Range's President and CEO, said, "The increase in our unproved resource potential is a reflection of our outstanding 2012 drilling results, the expansion of our drilling inventory and the technical progress made across many of our key projects. Of particular note, is the increase in the NGLs and crude oil portion of our unproved resource potential which is driven primarily by the progress made in the liquids-rich portion of the Marcellus Shale and in the horizontal Mississippian oil play. We have assembled an exceptional portfolio of high-return, low-cost projects. Importantly, we have also assembled a high-quality technical team that has a solid track record of converting our unproved resource potential into production and proved reserves at low cost. Over the past three years, Range has developed 4.7 Tcfe of proved reserves from our unproved resource potential. As a result over the past three years, our proved reserves have more than doubled at an average finding cost of $0.68 per mcfe. We believe this demonstrates our ability to accelerate the conversion of our unproved resource potential into proved reserves with one of the industry’s leading cost structures.”