12:00 | 31.03.2010
Range Closes Ohio Property Sale
RANGE RESOURCES CORPORATION (NYSE: RRC) today announced the
closing of the first phase of its sale of tight gas sand properties in
Ohio for a purchase price of approximately $300 million. As further
consents to lease assignments are obtained, subsequent closings are
expected to take place covering the remaining approximately $23 million
of properties. In total, the properties include approximately 3,300
producing wells with net production of approximately 25 Mmcfe per day.
Range also announced that its bank group has reaffirmed the $1.5 billion
borrowing base on its revolving credit facility at the regularly
scheduled semi-annual redetermination. The reaffirmation of the
borrowing base fully reflected the asset sales, including the Ohio
properties. Notwithstanding the $1.5 billion approved borrowing base,
Range elected to maintain the $1.25 billion lender commitment amount.
The Range bank group consists of 26 financial institutions with no
single bank holding more than 5% of the total commitment. There was no
change in interest rates, fees or repayment terms. Currently, Range has
more than $1 billion of available liquidity. The credit facility
maturity date remains October 2012. Under terms of the credit facility,
the borrowing base is determined twice each year by the bank group
utilizing bank estimates of reserves and future oil and gas prices. The
next redetermination is scheduled for October 1, 2010.
Commenting on the announcements, Range’s Chairman and CEO, John H.
Pinkerton, said, “Since early 2009, we have sold properties containing
approximately 6,200 wellbores. This represents roughly 50% of our well
count, but less than 10% of our production and reserves. During this
period, we have continued to drive up production and reserves by
focusing on our lower cost, higher return plays. Not only do these plays
have much lower finding cost, our operating costs are decreasing
significantly with the reduction in well count. Our higher return plays
allow us to do more with less, as we are continuing to increase
production with fewer rigs. In this low gas price environment, we are
focusing our capital on those plays where we can achieve attractive
returns. Given the recent asset sales, we are also pleased that our bank
group has chosen to maintain our $1.5 billion borrowing base, providing
us with more than sufficient liquidity. Despite low natural gas prices,
we are extremely well positioned to continue to build per share value.”
RANGE RESOURCES CORPORATION is an independent oil and gas company
operating in the Southwest, Appalachian and Gulf Coast regions of the
United States.
Except for historical information, statements made in this release,
including those relating to future closings, anticipated financial
results, future production, future liquidity and liquidity needs are
forward-looking statements.These statements are based on
assumptions and estimates that management believes are reasonable based
on currently available information; however, the Company’s future
performance is subject to a wide range of business risks.Any
number of factors could cause actual results to differ materially from
those in the forward-looking statements, including the volatility of oil
and gas prices, 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 equipment,
changes in financial markets, litigation and environmental risks.The
Company undertakes no obligation to publicly update or revise any
forward-looking statements.Further information on risks and
uncertainties is available in the Company’s filings with the Securities
and Exchange Commission, which are incorporated by reference.
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