OGJ editors
HOUSTON, Dec. 19 -- Range Resources Corp., Fort Worth, Tex., agreed to acquire certain West Texas oil and gas properties for $85 million. The properties are adjacent to Range's Conger field properties in Sterling County.
As of Dec. 31, 2002, the properties had proved reserves of80 Bcfe, of which 88% is natural gas and natural gas liquids by volume and 80% is classified as proved developed. Current net production from the properties exceeds 14 MMcfed.
Range plans to operate more than 95% of the production. The properties have a shallow decline and long life with a reserve-to-production ratio of more than 15 years.
The properties include more than 500 wells, which produce primarily from the Cisco and Canyon formations at an average depth of 7,500 ft. An associated 400-mile gathering system also is being acquired.
More than 40 proven drilling locations will be acquired along with all deep drilling rights on 38,000 gross (32,000 net) acres of leases. A development program will be initiated in 2004 to increase production during the next 3 years.
The purchase is expected to close by Dec. 31.
