SEC Filings

8-K
RANGE RESOURCES CORP filed this Form 8-K on 02/23/2017
Entire Document
 

 

 

 

 

 

 

 

 

 

 

 

Expected 2017 Well Costs

 

Projected EURs for 2017 Wells

 

Net Acreage by Area

(Marcellus only)

 

 

 

 

 

 

 

 

SW PA Super-Rich

 

$7.3 million

 

20.4 Bcfe

 

110,000

 

 

SW PA Wet

 

$6.8 million

 

24.6 Bcfe

 

225,000

 

 

SW PA Dry

 

$6.1 million

 

22.3 Bcf  

 

180,000

 

 

NE PA Dry

 

$5.0 million

 

16.0 Bcf  

 

  95,000

 

 

Total Marcellus

 

 

 

 

 

610,000

 

 

Upper Red

 

$7.7 million

 

17.5 Bcfe

 

 

 

 

Lower Red

 

$7.7 million

 

11.8 Bcfe

 

 

 

 

Total N. LA

 

 

 

 

 

220,000

 

 

         Total

 

 

 

 

 

830,000

 

 

 

 

Marcellus Shale

 

Production for the fourth quarter of 2016 averaged approximately 1,419 net Mmcfe per day for both Marcellus Shale divisions, an 11% increase over the prior year.  The Southern Marcellus Shale Division averaged 1,235 net Mmcfe per day during the quarter, a 20% increase over the prior year.  The Northern Marcellus Shale Division averaged 184 net Mmcf per day during the quarter, a 25% decrease over the prior year, or a 16% decrease over the prior year when adjusted for asset sales.

 

Southern Marcellus Shale

 

The Southern Marcellus Shale division brought on line ten wells in the fourth quarter, one in the super-rich area, four in the wet area and five in the dry area.  The operated rig count of five has stayed consistent throughout most of the second half of 2016, with three horizontal rigs and two air rigs.  

 

The team continues to look for ways to reduce costs and increase recoveries.  Several recent examples are shown below, which have continued to drive lower normalized well costs and reductions in operating costs per mcfe.

 

 

Lateral lengths averaged 6,500 feet in 2016, compared to 6,100 feet in 2015, with projected lateral lengths in 2017 expected to average over 8,000 feet

 

Reduced water handling costs in 2016 by over $30 million compared to 2015

 

Increased lateral feet drilled per day by 40% compared to the previous year

 

Reduced average completion costs per lateral foot by 14% compared to the previous year

 

Managed service costs through better utilization rates and long-term vendor relationships

 

A recent example of what we expect when going back to core areas with longer laterals is a four well pad in the wet area brought on line in the fourth quarter, with an average 9,265 lateral length with 46 stages per well.  The average peak 24 hour production rate to sales, under constrained conditions was 35.1 Mmcfe per day per well, roughly twice the average rate of the offset pads.  This is a result of refined completion designs, improved landing and longer laterals.  On a normalized basis, average cost per well is $651,000 per 1,000 lateral foot with average EUR per well of 3.9 Bcfe per 1,000 lateral foot.  On an absolute basis, these wells represent a 47% improvement in recoveries, with an 11% reduction in cost from the average shown on page 35 in the latest investor presentation, with many additional locations expected to produce similar results.

 

North Louisiana

 

Production for the division in the fourth quarter of 2016, the first full quarter since the Memorial acquisition closing on September 16, 2016, averaged approximately 399 net Mmcfe per day, consisting of 294 Mmcf per day of gas, 13,461 barrels of NGLs per day and 3,998 barrels of condensate per day.  

 

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