Range raises 2006 capital budget by 32%

Range Resources Corp., Fort Worth, has set a capital budget of $429 million for 2006, excluding acquisitions, up 32% from expected spending in 2005.

Dec. 15, 2005

By OGJ editors
HOUSTON, Dec. 15 -- Range Resources Corp., Fort Worth, has set a capital budget of $429 million for 2006, excluding acquisitions, up 32% from expected spending in 2005.

The company earmarked $358 million for drilling and recompletions, $38 million for land, $18 million for seismic operations, and $15 million for the expansion and enhancement of gathering systems and facilities.

The drilling and recompletion investment will be divided 85% to development and exploitation activities and 15% to exploration.

Range expects to drill 1,096 gross (802 net) wells and to conduct 63 gross (44 net) recompletions. About 46% of the budget is allocated to the Appalachian region and the Southwest, which includes the Permian basin, the Midcontinent, and East Texas. The remaining 8% is for the Gulf Coast.

About 75% of the 2006 budget will be funded from internal cash flow, Range said. It estimates 2005 capital spending, excluding acquisitions, at $324 million.