October 14, 2009 - Range Resources Corp. (RRC) has come out with an operational update on the Marcellus Shale today and it appears the company is starting to drill in Lycoming County, PA.
Range Resources Corp. (RRC) Operational Update - 10/14/09
During the third quarter, the Marcellus Shale division continued to make excellent progress. Recently, we added two key members to our Marcellus team. Joe Frantz has been added as Vice President of Engineering and Scott Roy has been added as Vice President of Government and Regulatory Affairs. Both are leaders in their fields and bring substantial experience. The Marcellus Division is continuing to delineate and de-risk its large land position. We now have a rig in northeast Pennsylvania in Lycoming County drilling the first of two horizontal wells, which offset our high-rate vertical wells. We expect initial results from these two wells by early next year. We also plan to drill a Utica Shale horizontal and a shallow upper Devonian horizontal before year-end. Results of these two wells should be available by early first quarter.
Marcellus Shale production is well on plan and now exceeds 80 Mmcfe per day net and is expected to approach the higher end of the previously revised target of 90 - 100 Mmcfe per day net by year-end 2009. From inception, Range has drilled 77 horizontal Marcellus Shale wells, of which 60 have been completed and 54 are on production. The Company expects to drill and case approximately 20 additional horizontal wells in the Marcellus Shale play during the fourth quarter 2009 and carryover approximately 20 of these for completion in 2010. The Marcellus division is currently running a total of four horizontal rigs. We anticipate entering 2010 with six custom-built horizontal rigs. Full Press Release
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Showing posts with label rrc. Show all posts
Showing posts with label rrc. Show all posts
Wednesday, October 14, 2009
Thursday, November 20, 2008
Marcellus Shale: Range Resources Drilling Update 11/20/08
Range Resources ( RRC ) is out with a drilling update, 11/20/08, on their Marcellus Shale natural gas acreage.
Last month Range and MarkWest Energy Partners, L.P. (NYSE:MWE) announced completion of the first phase of the Marcellus Shale infrastructure. The initial phase included gas gathering and compression as well as Pennsylvania's first large-scale gas processing facility. Since then Range has been completing production facilities and connecting previously drilled wells to the gas gathering system. Currently, seven wells are tied into the gas processing facility and net sales from these wells total 30 Mmcfe per day.
MarkWest is currently undertaking additional infrastructure development which will serve to expand the gathering system and add gas processing capacity. A cryogenic plant is expected to be online by the end of first quarter 2009, increasing gas processing capacity to 60 Mmcf per day. By year-end 2009 or early 2010, processing capacity is anticipated to be 180 Mmcf per day. As additional gas processing capacity is completed, Range will turn on additional wells. Range currently plans to enter 2009 with three horizontal rigs, increasing to six rigs by the end of 2009. By year-end 2009, Range anticipates that production will reach 80 to 100 Mmcfe per day, net to its interest.
John H. Pinkerton, Chairman and CEO of Range Resources, commented, "We continue to make exciting progress in the Marcellus Shale play as production rates are exceeding expectations. Our technical team is making excellent headway in reducing drilling costs which is very important as we ramp up our development activities. Having now transitioned from the testing phase to the development phase, the Marcellus Shale play should greatly enhance our future production, reserves and capital efficiency. Given its proximity to the northeastern gas markets, the Marcellus Shale play is ideally located to provide a new source of domestic, clean-burning natural gas for many years to come. Importantly, during this period of economic uncertainty, the Marcellus Shale play has the potential to add tens of thousands of new jobs and billions of dollars of economic benefit
http://www.b2i.us/profiles/investor/ResLibraryView.asp?BzID=790&ResLibraryID=27570&Category=1261
Last month Range and MarkWest Energy Partners, L.P. (NYSE:MWE) announced completion of the first phase of the Marcellus Shale infrastructure. The initial phase included gas gathering and compression as well as Pennsylvania's first large-scale gas processing facility. Since then Range has been completing production facilities and connecting previously drilled wells to the gas gathering system. Currently, seven wells are tied into the gas processing facility and net sales from these wells total 30 Mmcfe per day.
MarkWest is currently undertaking additional infrastructure development which will serve to expand the gathering system and add gas processing capacity. A cryogenic plant is expected to be online by the end of first quarter 2009, increasing gas processing capacity to 60 Mmcf per day. By year-end 2009 or early 2010, processing capacity is anticipated to be 180 Mmcf per day. As additional gas processing capacity is completed, Range will turn on additional wells. Range currently plans to enter 2009 with three horizontal rigs, increasing to six rigs by the end of 2009. By year-end 2009, Range anticipates that production will reach 80 to 100 Mmcfe per day, net to its interest.
John H. Pinkerton, Chairman and CEO of Range Resources, commented, "We continue to make exciting progress in the Marcellus Shale play as production rates are exceeding expectations. Our technical team is making excellent headway in reducing drilling costs which is very important as we ramp up our development activities. Having now transitioned from the testing phase to the development phase, the Marcellus Shale play should greatly enhance our future production, reserves and capital efficiency. Given its proximity to the northeastern gas markets, the Marcellus Shale play is ideally located to provide a new source of domestic, clean-burning natural gas for many years to come. Importantly, during this period of economic uncertainty, the Marcellus Shale play has the potential to add tens of thousands of new jobs and billions of dollars of economic benefit
http://www.b2i.us/profiles/investor/ResLibraryView.asp?BzID=790&ResLibraryID=27570&Category=1261
Thursday, October 30, 2008
Haynesville Shale: Leasing Prices and Mineral Rights Update
As I updated my www.oilshalegas.com website each quarter, I always like to dig deep into these conference calls to see what the CEO's out there are saying. You can really get some interesting comments. The following is from Seeking Alpha from the Range Resources RRC CEO John Pinkerton on the Haynesville Shale and Mineral Rights leasing.
I think there's been a huge amount of discussion in terms of what's happened with acreage prices throughout some of these shale plays, and to me it makes absolute sense. I think when we all went on vacation in June to the beach, gas prices were $12, $13 and we were feeling all great. By the time we get our kids in school, they were less than $8 going down. So clearly what's happened is I think the industry responded in the way that you would think in that acreage prices have plummeted. I think the classic example is the Haynesville where you had complete hysteria, prices going up to $30,000 an acre for trend trend acreage which is unbelievable. I think a lot of those companies have shut down, and now you can get acreage in the Haynesville for $5,000 or less. And the same thing, not clearly that volatile, but in the Barnett, we see acreage coming down maybe as much to half or maybe even two-thirds as what it cost during the height of the land grab.
The good news is and we've gone out of our way to give you both what the cost was in 2008 so far and we continue to lease and what we got from inception, and the good news is that the Marcellus never quite hit those kinds of frothy prices. We've heard prices as high in the Marcellus as $5,000, $6,000, $7,000 an acre. We haven't paid that. We might have paid for five acres offsetting one of our drill sites, just to get somebody that was just being obstinate. But they've never really gone that high. The good news is that given the size of the Marcellus, there's still lots of acreage to pick up but we just got to be careful and we'll continue to be careful. We haven't bought any trend acreage, what we call just rank trend acreage in the Marcellus this year
I think there's been a huge amount of discussion in terms of what's happened with acreage prices throughout some of these shale plays, and to me it makes absolute sense. I think when we all went on vacation in June to the beach, gas prices were $12, $13 and we were feeling all great. By the time we get our kids in school, they were less than $8 going down. So clearly what's happened is I think the industry responded in the way that you would think in that acreage prices have plummeted. I think the classic example is the Haynesville where you had complete hysteria, prices going up to $30,000 an acre for trend trend acreage which is unbelievable. I think a lot of those companies have shut down, and now you can get acreage in the Haynesville for $5,000 or less. And the same thing, not clearly that volatile, but in the Barnett, we see acreage coming down maybe as much to half or maybe even two-thirds as what it cost during the height of the land grab.
The good news is and we've gone out of our way to give you both what the cost was in 2008 so far and we continue to lease and what we got from inception, and the good news is that the Marcellus never quite hit those kinds of frothy prices. We've heard prices as high in the Marcellus as $5,000, $6,000, $7,000 an acre. We haven't paid that. We might have paid for five acres offsetting one of our drill sites, just to get somebody that was just being obstinate. But they've never really gone that high. The good news is that given the size of the Marcellus, there's still lots of acreage to pick up but we just got to be careful and we'll continue to be careful. We haven't bought any trend acreage, what we call just rank trend acreage in the Marcellus this year
Barnett Shale: Range Resources RRC Update 10/30/08
Range Resources came out with earning last week and updated its investors on their Barnett Shale drilling operations:
In the Fort Worth Basin, third quarter activity was highlighted by drilling success in Hood County where a seven-well package averaged 11.4 days from spud to rig release and achieved average initial production of 2.0 Mmcfe per day per well. These wells were drilled and completed for $1.9 million per well. The effort has been extended onto a new 3,000 acre block immediately adjacent where Range plans to actively drill and complete additional wells. The first two wells on this new acreage block have been completed with initial rates averaging 2.6 Mmcf per day. In southwestern Tarrant County, the Company has spud a 250 foot spaced pilot and is participating in a 330 foot spaced development well in northwestern Ellis County.
In the Fort Worth Basin, third quarter activity was highlighted by drilling success in Hood County where a seven-well package averaged 11.4 days from spud to rig release and achieved average initial production of 2.0 Mmcfe per day per well. These wells were drilled and completed for $1.9 million per well. The effort has been extended onto a new 3,000 acre block immediately adjacent where Range plans to actively drill and complete additional wells. The first two wells on this new acreage block have been completed with initial rates averaging 2.6 Mmcf per day. In southwestern Tarrant County, the Company has spud a 250 foot spaced pilot and is participating in a 330 foot spaced development well in northwestern Ellis County.
Wednesday, October 22, 2008
Marcellus Shale: Washington County, Pa Update 10/22/08
Today, 10/22/08, Range Resources ( RRC ) and MarkWest Energy ( MWE ) announced the commencement of the initial phase of Pennsylvania’s first large-scale gas processing infrastructure with the successful launch of a mechanical refrigeration processing plant in Washington County.
Today’s announcement is the culmination of efforts by Range Resources and MarkWest to bring Marcellus Shale gas to the local market. Over the past four years, Range Resources has invested more than $700 million in leasehold, drilling and infrastructure.
MarkWest is investing approximately $200 million to construct midstream infrastructure to gather and process the natural gas that Range Resources is extracting from the Marcellus Shale. MarkWest’s investment includes the refrigeration plant announced today, which has capacity to process 30 million cubic feet per day (Mmcf per day) of natural gas. In addition, MarkWest is constructing a 30 Mmcf per day cryogenic processing plant that is expected to commence operations late in the first quarter of 2009. The cryogenic plant is being constructed next to the refrigeration plant and includes a depropanizer to extract propane from the gas stream, which will be sold regionally. MarkWest’s planned investment also includes a 120 Mmcf per day cryogenic plant with a depropanizer to extract additional natural gas liquids from the gas stream. The 120 Mmcf per day cryogenic plant is expected to be completed in late 2009. MarkWest is also evaluating the installation of a large fractionation facility to further enhance the value of the recovered natural gas liquids. http://oilshalegas.com
Today’s announcement is the culmination of efforts by Range Resources and MarkWest to bring Marcellus Shale gas to the local market. Over the past four years, Range Resources has invested more than $700 million in leasehold, drilling and infrastructure.
MarkWest is investing approximately $200 million to construct midstream infrastructure to gather and process the natural gas that Range Resources is extracting from the Marcellus Shale. MarkWest’s investment includes the refrigeration plant announced today, which has capacity to process 30 million cubic feet per day (Mmcf per day) of natural gas. In addition, MarkWest is constructing a 30 Mmcf per day cryogenic processing plant that is expected to commence operations late in the first quarter of 2009. The cryogenic plant is being constructed next to the refrigeration plant and includes a depropanizer to extract propane from the gas stream, which will be sold regionally. MarkWest’s planned investment also includes a 120 Mmcf per day cryogenic plant with a depropanizer to extract additional natural gas liquids from the gas stream. The 120 Mmcf per day cryogenic plant is expected to be completed in late 2009. MarkWest is also evaluating the installation of a large fractionation facility to further enhance the value of the recovered natural gas liquids. http://oilshalegas.com
Saturday, October 18, 2008
Marcellus Shale - RRC Range Resources Earnings 10/22
This coming week, the natural gas market will be eyeing Range Resources ( RRC ) as this company will be releasing earnings on Wednesday 10/22/08 at 4pm.
Range Resources is one of the biggest operators in the Marcellus Shale natural gas field and it will be interesting to see what they have to say about operations given the steep drop in natural gas prices. Chesapeake Energy ( CHK ) is reporting that it will try to sell its Marcellus Shale stake for 2.5 - 3 billion in cash to raise capital.
I will have an update later this week....for a full earnings calendar visit http://blackberrystocks.com
Range Resources is one of the biggest operators in the Marcellus Shale natural gas field and it will be interesting to see what they have to say about operations given the steep drop in natural gas prices. Chesapeake Energy ( CHK ) is reporting that it will try to sell its Marcellus Shale stake for 2.5 - 3 billion in cash to raise capital.
I will have an update later this week....for a full earnings calendar visit http://blackberrystocks.com
Monday, September 8, 2008
Marcellus Shale: RRC Range Resources Pipeline ahead of Schedule 9/08/08
The Fort Worth Business Press is reporting that the Range Resources ( RRC ) Marcellus Shale pipeline is ahead of schedule.
Range Resources Corp. said the first phase of its Marcellus Shale pipeline and processing build out was ahead of schedule, allowing its previously stated goal of 30 million cubic feet equivalent of daily production to be reached a full quarter earlier.
The Fort Worth-based energy company currently holds about 850,000 acres in Marcellus Shale leasing, and has three rigs operating in the shale, which stretches from New York though Pennsylvania and into West Virginia. Year-end production is projected to reach 30 MMcfe/d, a full quarter earlier than the company’s previously stated goal of first quarter 2009, according to the statement.
http://www.fwbusinesspress.com/display.php?id=8361
Range Resources Corp. said the first phase of its Marcellus Shale pipeline and processing build out was ahead of schedule, allowing its previously stated goal of 30 million cubic feet equivalent of daily production to be reached a full quarter earlier.
The Fort Worth-based energy company currently holds about 850,000 acres in Marcellus Shale leasing, and has three rigs operating in the shale, which stretches from New York though Pennsylvania and into West Virginia. Year-end production is projected to reach 30 MMcfe/d, a full quarter earlier than the company’s previously stated goal of first quarter 2009, according to the statement.
http://www.fwbusinesspress.com/display.php?id=8361
Wednesday, July 23, 2008
Marcellus Shale - Fast Track Law Passes - CHK, RRC, EOG
New York Gov. David Paterson has signed Wednesday a bill that fast-tracks horizontal natural gas drilling in the state's Marcellus Shale, despite the opposition of environmental groups that claim the drilling technique could contaminate groundwater.
Over the past few years, natural gas companies including Chesapeake Energy (CHK), Range Resources Corp. (RRC) and EOG Resources Inc. (EOG) have bought up substantial acreage in the Marcellus Shale, a so-called "unconventional" natural gas reservoir in New York, Pennsylvania, West Virginia and Ohio. Gas plays like Marcellus require more expensive drilling techniques than conventional gas deposits do, but rising hydrocarbon prices have made such ventures economically feasible.
Geologists have said the Marcellus Shale could contain enough natural gas to meet U.S. demand for two years. But most of the Marcellus leasing activity has focused on Pennsylvania, which is thought to have the most potential for shale gas production.
Shale formations like Marcellus require a drilling technique known as "hydrofracking", which involves fracturing rock by injecting a mixture of water, sand and chemicals at high pressure into deep wells. Environmentalists have argued that the chemicals used in hydrofracking are toxic and could leach into drinking water supplies.
The bill Paterson signed into law Wednesday allows such gas wells to be spaced more closely together. It also allows producers to obtain permits for wells in as little as 12 weeks.
In a statement, Paterson said the measure doesn't relax environmental safeguards.
"This new law will ensure greater efficiency in the processing of requests to permit oil and gas wells, while maintaining environmental and public health safeguards," he said. "Natural gas exploration has the potential to increase domestic supplies of natural gas, create jobs, expand the tax base and benefit the upstate economy."
http://www.wbng.com/news/local/25817854.html
Over the past few years, natural gas companies including Chesapeake Energy (CHK), Range Resources Corp. (RRC) and EOG Resources Inc. (EOG) have bought up substantial acreage in the Marcellus Shale, a so-called "unconventional" natural gas reservoir in New York, Pennsylvania, West Virginia and Ohio. Gas plays like Marcellus require more expensive drilling techniques than conventional gas deposits do, but rising hydrocarbon prices have made such ventures economically feasible.
Geologists have said the Marcellus Shale could contain enough natural gas to meet U.S. demand for two years. But most of the Marcellus leasing activity has focused on Pennsylvania, which is thought to have the most potential for shale gas production.
Shale formations like Marcellus require a drilling technique known as "hydrofracking", which involves fracturing rock by injecting a mixture of water, sand and chemicals at high pressure into deep wells. Environmentalists have argued that the chemicals used in hydrofracking are toxic and could leach into drinking water supplies.
The bill Paterson signed into law Wednesday allows such gas wells to be spaced more closely together. It also allows producers to obtain permits for wells in as little as 12 weeks.
In a statement, Paterson said the measure doesn't relax environmental safeguards.
"This new law will ensure greater efficiency in the processing of requests to permit oil and gas wells, while maintaining environmental and public health safeguards," he said. "Natural gas exploration has the potential to increase domestic supplies of natural gas, create jobs, expand the tax base and benefit the upstate economy."
http://www.wbng.com/news/local/25817854.html
Monday, July 14, 2008
Marcellus Shale - Range Resources RRC
Range Resources RRC is out with a Marcellus Shale update this morning.....very nice indeed! They state that their Acreage position is now 1.4 million acres....also they think their high graded acreage position stands at 850,000 acres.
More Marcellus Shale Natural Gas Formation information can be found at the following link
http://oilshalegas.com/marcellusshale.html
http://hainesvilleshale.com
More Marcellus Shale Natural Gas Formation information can be found at the following link
http://oilshalegas.com/marcellusshale.html
http://hainesvilleshale.com
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