FORT WORTH, Texas--()--RANGE RESOURCES CORPORATION (NYSE: RRC) announced today that its estimated unrisked unproved resource potential (“unproved resource potential”) as of December 31, 2012 increased to 48 – 68 Tcfe, up from 47 – 66 Tcfe at year-end 2011. The year-end 2012 unproved resource potential includes 35 – 46 Tcf of natural gas and 2.3 – 3.5 billion barrels of NGLs and crude oil. Of the total year-end 2012 unproved resource potential, 54% is attributable to the Marcellus Shale with the remaining 46% attributable to other formations in Appalachia, the Midcontinent and West Texas. Range previously announced that its year-end 2012 proved reserves were 6.5 Tcfe. Based on the mid-point of the unproved resource potential, Range has the opportunity to grow its proved reserves almost 9 times. As a result of its development activity, Range has moved 4.7 Tcfe of unproved resource potential to proved reserves over the last three years. No unproved resource potential estimates were assigned to the Company’s wet or dry Utica acreage. The estimated unproved resource potential assumes full ethane extraction.
Commenting, Jeff Ventura, Range's President and CEO, said, "The increase in our unproved resource potential is a reflection of our outstanding 2012 drilling results, the expansion of our drilling inventory and the technical progress made across many of our key projects. Of particular note, is the increase in the NGLs and crude oil portion of our unproved resource potential which is driven primarily by the progress made in the liquids-rich portion of the Marcellus Shale and in the horizontal Mississippian oil play. We have assembled an exceptional portfolio of high-return, low-cost projects. Importantly, we have also assembled a high-quality technical team that has a solid track record of converting our unproved resource potential into production and proved reserves at low cost. Over the past three years, Range has developed 4.7 Tcfe of proved reserves from our unproved resource potential. As a result over the past three years, our proved reserves have more than doubled at an average finding cost of $0.68 per mcfe. We believe this demonstrates our ability to accelerate the conversion of our unproved resource potential into proved reserves with one of the industry’s leading cost structures.”
RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading independent oil and natural gas producer with operations focused in the Appalachia and the southwest portion of the United States. The Company pursues an organic growth strategy targeting high return, low-cost projects within its large inventory of low risk, development drilling opportunities. The Company is headquartered in Fort Worth, Texas. More information about Range can be found at www.rangeresources.com and www.myrangeresources.com.
Except for historical information, statements made in this release, including those relating technical progress, estimated ethane volumes, progress in liquid-rich areas, exceptional portfolio, solid track record, unproved resource potential, continued improvements, growth objectives, future low cost structure and superior economics are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and Range's future performance are subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, the volatility of oil and gas prices, the results of our hedging transactions, the costs and results of drilling and operations, the timing of production, mechanical and other inherent risks associated with oil and gas production, weather, the availability of drilling equipment, changes in interest rates, litigation, uncertainties about reserve estimates, environmental risks and regulatory changes. Range undertakes no obligation to publicly update or revise any forward-looking statements. Further information on risks and uncertainties is available in Range's filings with the Securities and Exchange Commission ("SEC"), which are incorporated by reference.
The SEC permits oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions as well as the option to disclose probable and possible reserves. Range has elected not to disclose the Company’s probable and possible reserves in its filings with the SEC. Range uses certain broader terms such as "resource potential,” or "unproved resource potential" or "upside" or other descriptions of volumes of resources potentially recoverable through additional drilling or recovery techniques that may include probable and possible reserves as defined by the SEC's guidelines. Range has not attempted to distinguish probable and possible reserves from these broader classifications. The SEC’s rules prohibit us from including in filings with the SEC these broader classifications of reserves. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized. Unproved resource potential refers to Range's internal estimates of hydrocarbon quantities that may be potentially discovered through exploratory drilling or recovered with additional drilling or recovery techniques and have not been reviewed by independent engineers. Unproved resource potential does not constitute reserves within the meaning of the Society of Petroleum Engineer's Petroleum Resource Management System and does not include proved reserves. Area wide unproven resource potential has not been fully risked by Range's management. Actual quantities that may be ultimately recovered from Range's interests will differ substantially. Factors affecting ultimate recovery include the scope of Range's drilling program, which will be directly affected by the availability of capital, drilling and production costs, commodity prices, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals, field spacing rules, recoveries of gas in place, length of horizontal laterals, actual drilling results, including geological and mechanical factors affecting recovery rates and other factors. Estimates of resource potential may change significantly as development of our resource plays provides additional data. Investors are urged to consider closely the disclosure in our most recent Annual Report on Form 10-K, available from our website at www.rangeresources.com or by written request to 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102. You can also obtain this Form 10-K by calling the SEC at 1-800-SEC-0330.