Exploration & Production | Quarterly / Earnings Reports
Range Resources First Quarter 2013 MidContinent Update
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During the first quarter, the Midcontinent division continued to focus on Range’s Horizontal Mississippian acreage along the Nemaha Ridge. A total of 17 (16.7 net) wells were turned to sales with average lateral lengths of 3,616 feet with 19 frac stages. Average 7-day rates for the completions were 480 (382 net) boe per day with 78% liquids. Notably, the division drilled the Tyr 24-3N with a 24-hour initial production rate of 1,024 (827 net) boe per day that was 80% liquids, from a lateral of 3,403 feet with 20 frac stages. The Balder #1-30N, previously announced in 2012, has now produced a over 68,000 barrels of oil during its first 11 months of production, the average rate during this time period was 562 (388 net) boe per day with 74% liquids and a payback period of less than six months.
At the beginning of the year, Range anticipated drilling 51 (42 net) wells during 2013. As a higher than expected working interest has been realized during the first quarter, Range now expects to turn to sales a total of 41 to 43 (40 to 42 net) producing wells in 2013; therefore, although the gross planned producing well count has decreased, the net producing well count is approximately the same. During the past year, Range has seen over a 30% reduction in spud to spud cycle times for the Horizontal Mississippian, and is now averaging less than 25 days. Due to the increased drilling efficiencies along with fewer gross wells being drilled, Range will complete its 2013 development plan by using fewer rigs and drilling fewer salt water disposal wells than originally estimated.
In addition, continued activity in the Texas Panhandle is anticipated for most of 2013 where Range has had success drilling Horizontal St. Louis wells. Range completed two St. Louis wells in the first quarter and expects to drill another three to five wells in that area by the end of 2013.