RANGE RESOURCES CORPORATION announced several recent operational accomplishments, including its net production exceeding 1 Bcfe per day for the first time in Company history.
Commenting on the announcement, Jeff Ventura, Range's President and CEO, said, "Reaching 1 Bcfe per day on a net basis corporately and on a gross basis just from the Marcellus are both very significant accomplishments. The success of our drilling program is keeping us on track to achieve the high-end of our production growth target of 20% to 25% for 2013 and we expect to continue our outstanding growth in proved reserves for the year as well. It is exciting to see much of the infrastructure that we envisioned years ago, now coming on line that will allow our continued growth. Our sizable acreage position in the Marcellus Shale coupled with the Upper Devonian and Utica/Point Pleasant Shales in southwest Pennsylvania, gives us confidence that we can continue to deliver growth of 20% to 25% for many years. We believe this strong growth, coupled with high returns, low cost and low reinvestment risk will allow Range to drive substantial value per share for our shareholders for years to come."
Range's corporate daily production has reached 1 Bcfe per day net. This is a significant milestone for Range, as the Company was producing approximately 200 Mmcfe per day when we drilled the Marcellus discovery in 2004, representing a 20% compounded annual growth rate over this nine year time frame even with $2.3 billion of asset sales during this time. Marcellus gross production has increased from approximately 35 Mmcfe per day at the end of 2008, just before the cryogenic gas processing plant went online at Houston, Pennsylvania, to 1 Bcfe per day gross, a 96% compounded annual growth rate for the past 5 years.
Super-rich Marcellus Wells
The 17 super-rich wells that were drilled in 2012 and turned to sales during the early part of 2013 are consistently producing approximately 40% above the 1.32 Mmboe type curve established at year end 2012 for wells with approximately 3,800 foot laterals with 18 frac stages. These 17 super-rich wells have been on line for over 250 days, with the longest being on line for 312 days. The production curves are demonstrating that our enhanced completions are improving the estimated ultimate recoveries of the wells rather than simply being an acceleration of production. The 17 wells were drilled with average lateral length of 3,532 feet with an average of 18 frac stages. Range has turned to sales an additional 22 super-rich Marcellus wells during mid-year 2013 which have produced on average just over 114 days. Those 22 wells are performing approximately 74% above the 1.32 Mmboe EUR type curve with average laterals of 4,120 feet and 21 frac stages. Initial 24-hour production rates on the 22 wells averaged 2,487 (2,059 net) boe per day with 65% liquids assuming 80% ethane extraction (476 barrels per day of condensate, 1,149 barrels per day of NGLs and 5.2 Mmcf per day of gas). Slide 18 in the Company's current investor presentation has been updated showing the performance of the 17 super-rich well group and the 22 well group compared to the 1.32 Mmboe EUR type curve for 3,800 foot laterals. Wells completed in 2014 are expected to have an average of 4,500 foot laterals and 22 frac stages with projected EURs of 1.82 Mmboe.
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