Range Resources announced in their 3rd quarter 2010 results update that they have decided to sell their Barnett Shale position in the Fort Worth basin. The sale will include roughly 360 producing wells with average net production from the Barnett expected to be 120-130 Mmcfe/d in the 4th quarter 2010. The properties include 53,000 net acres, of which around 80% is located in the core area and nearly 80% is held by production.
Range’s decision to offer up their Barnett properties is an effort to generate capital to focus on more liquids-rich plays like Marcellus, Midcontinent and Permian areas.
“Importantly, our portfolio of high-quality, high-return projects is leading the way as shown by the results of liquids-rich plays in the Marcellus Shale play as well as in the Midcontinent and Permian areas,” states John Pinkerton, Range’s Chairman and CEO. “Our confidence in the quality and size of these plays was one of the key reasons we have decided to market our Barnett Shale properties. Divesting of our Barnett Shale properties reflects Range’s strategy of focusing on per-share growth. While a sale of our Barnett Shale properties will provide substantial capital, it will not inhibit our per-share production and reserve growth outlook. We currently anticipate that we can grow production and reserves in 2011 on both an absolute and per-share basis, despite losing the production and reserves associated with the planned sale.”
The following is a map of Range’s Barnett wells colored by 6-month cum. We can see that they have wells in and around the core area of the play with their best wells in Tarrant and Johnson County.
To learn more visit the Range Operator folder in the Unconventional Updates in DI’s DNA.
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