Range sees vast potential in resource plays
Range Resources Corp., Fort Worth, plans to offer for sale its Barnett shale properties in Texas and sees dramatic potential in resource plays on other parts of its acreage.
By OGJ editors
HOUSTON, Oct. 28 -- Range Resources Corp., Fort Worth, plans to offer for sale its Barnett shale properties in Texas and sees dramatic potential in resource plays on other parts of its acreage.
The Barnett properties include 360 producing wells and 1,000 drilling locations. Net production is expected to be 120-130 MMcfd of gas equivalent in the 2010 fourth quarter. The properties include 53,000 net acres, 80% in the play’s core area, and nearly 80% of the acreage is held by production.
It is still early, the company said, but the Upper Devonian, Cana, and Utica shales have the potential to sharply expand Range’s unrisked resource potential. Excluding the Upper Devonian, Cana, and Utica potential, the company’s acreage position is estimated to hold 24-32 tcfe of unproven resource potential, or enough to grow its proved reserves by 10 times.
Range said its Marcellus Division exited the quarter ended Sept. 30 with average net production of 191 MMcfed, 29% of which is natural gas liquids and condensate.
The division brought on line 18 horizontal wells in southwestern Pennsylvania in the quarter and drilled 23 more wells that are expected to be completed by yearend. The initial 7-day gross production rate of the 18 wells averaged 8.5 MMcfed under somewhat constrained conditions.
Based on initial production results, the company expects the average estimated ultimate recovery of these 18 wells to exceed its average EUR of 5 bcfe/well for the southwest portion of Pennsylvania.
In response to lower natural gas prices, Range plans to utilize moderate-length laterals and fewer wells per pad in the near-term to efficiently develop its leasehold while conserving capital. In the meantime, upside potential from existing acreage continues to expand.
The company has drilled and completed an initial horizontal test well to Upper Devonian shales. The average 7-day test rate for the initial well was 5.1 MMcfed. More Upper Devonian test wells are planned in 2011.