RANGE RESOURCES CORPORATION (NYSE: RRC) today announced that it had sold its Gulf of Mexico properties to a private company for $155 million. The properties included Range’s interests in 37 platforms in water depths ranging from 11 to 240 feet. None of the properties are operated by Range. At year-end 2006, Range estimated that the properties contained proved reserves approximating 40 Bcfe, representing 2% of its total proved reserves. As a result of the sale, Range will record a pre-tax gain of approximately $100 million in the first quarter of 2007.
Commenting on the announcement, John Pinkerton, Range’s President and CEO, said, “We are extremely pleased with the sale of our Gulf of Mexico properties. This sale coupled with the February sale of Austin Chalk properties has generated $237 million of aggregate proceeds. In both cases, the properties were not integral to our future growth, so we elected to monetize them. The sales strengthen the balance sheet, enhance our asset quality, lengthen our reserve life and lower our unit cost structure. Most important, the sales allow us to accelerate the development of other properties where we are confident that we can aggressively grow production and reserves in the future.”
RANGE RESOURCES CORPORATION (NYSE: RRC) is an independent oil and gas company operating in the Southwestern, Appalachian and Gulf Coast regions of the United States.
Except for historical information, statements made in this release, including estimates of oil and gas reserves, and future expenses are forward-looking statements as defined by the Securities and Exchange Commission. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management’s assumptions and Range’s future performance are subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, 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 drilling equipment, changes in interest rates, litigation, uncertainties about reserve estimates, environmental risks and other risks and uncertainties set forth in Item 1.A. of Range’s 2006 Annual Report Form 10-K filed with the Securities and Exchange Commission. Range undertakes no obligation to publicly update or revise any forward-looking statements. Further information on risks and uncertainties is available in Range’s filings with the Securities and Exchange Commission, which are incorporated by reference.
Range’s internal estimates of reserves may be subject to revision and may be different from estimates by our external reservoir engineers at year-end. Although we believe the expectations and forecasts reflected in these and other forward-looking statements are reasonable, we can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.
