By OGJ editors
HOUSTON, Dec. 14 -- Range Resources Corp. is expanding its Barnett shale holdings in the Fort Worth basin and has entered into definitive agreements with a subsidiary of DTE Energy Co. and a private company to acquire producing and nonproducing Barnett shale properties for $305 million.
The properties being acquired comprise about 14,000 net acres in Tarrant, Denton, Johnson, Ellis, Parker, and Hill counties, 73% held by production. These properties currently produce 14 MMcfd of gas equivalent, which is expected to increase to about 18 MMcfd of gas equivalent in the first quarter of 2008 as several newly drilled wells go on production.
The properties currently contain 51 producing wells, and Range has identified 183 drilling locations. Range estimates proved reserves attributable to the properties of 334 bcf of gas equivalent.
John Pinkerton, Range's president and chief executive officer, said, "Upon the closing of this transaction, Range's position in the Barnett shale will expand to 104,000 net acres and production will increase to over 90 [MMcfd of gas equivalent.]"
The acquisition is expected to close in January 2008, at which time Range will assume operation of the properties. Range intends to initially finance the purchase with bank credit.
Of its existing property base, Range has identified several noncore properties that it plans to sell in 2008 to help fund acquisitions. Production lost through these property sales will be offset by production from the properties being acquired, the company said.