Range Resources sets $1.065 billion capital budget

Fort Worth independent Range Resources Corp. reported capital spending plans totaling $1.065 billion for 2008. This represents an 18% increase over the company's 2007 budget.

Feb. 7, 2008

By OGJ editors
HOUSTON, Feb. 7 -- Fort Worth independent Range Resources Corp. reported capital spending plans totaling $1.065 billion for 2008. This represents an 18% increase over the company's 2007 budget.

This year's budget includes $783 million for drilling and recompletions, $109 million for land, $51 million for seismic surveys, and $122 million for the expansion and enhancement of gathering systems and facilities.

Of the drilling and recompletion capital, 95% is attributable to lower-risk development and exploitation activities, and 5% is attributable to exploration projects, Range said.

This year Range expects to drill 968 gross (715 net) wells and undertake 82 (66 net) recompletions. About 56% of the budget is attributable to the US Southwest region, 40% to the Appalachian region, and 4% to the Gulf Coast region.

Included in the budget are 187 net coalbed methane, tight gas, and shale wells in Nora-Haysi field in Virginia, 92 net Barnett shale wells in the Fort Worth basin, and 60 net Marcellus shale wells in Appalachia.

The remaining 376 net wells are primarily tight gas and oil wells in the company's other core areas.