By OGJ editors
HOUSTON, May 15 -- Range Resources Corp. agreed to acquire privately owned Stroud Energy Inc. for $450 million, including $82 million in debt. Both companies are based in Fort Worth.
Stroud has interests in 126 producing wells and owns lease positions covering 87,200 gross (67,000 net) acres in the Barnett shale, Cotton Valley, and Austin Chalk plays.
Range plans a five-rig drilling program, including three rigs Stroud already is running plus two rigs scheduled to arrive in the third quarter. Subject to Stroud shareholder approval and other closing conditions, closing is expected in late June.
During the first quarter, Stroud produced 33 MMcfd of gas equivalent, half of it from the Barnett shale. The Stroud properties have proved reserves of 171 bcf.
Range identified 236 drilling prospects on the Stroud properties, of which 182 are in the Barnett shale. Upon closing, Range will own 42,900 gross (35,300 net) acres in the Barnett shale. The company said it will consider divesting the Austin Chalk properties.