RANGE RESOURCES CORPORATION (NYSE: RRC) today announced that it has completed the initial closing of the transaction announced April 16, 2007 with Equitable Resources (NYSE: EQT), where Range acquired additional interests in the Nora field of Virginia and the companies entered into a joint development plan. The companies own interests in approximately 1,600 producing wells and more than 300,000 gross acres under lease. The initial closing included consideration relating to more than 80% of the properties and gathering assets subject to the transaction. As a result, Equitable and Range equalized their interests in the Nora field, including the producing wells, undrilled acreage and gathering system. A second closing covering the remainder of the properties and gathering assets is expected to occur after the remaining outstanding consents are obtained.
Under the joint development plan, Equitable will continue to operate the producing wells, manage the drilling operations of all future coal bed methane wells and manage the gathering system. Range will oversee the drilling of formations below the coal bed methane formation, including the tight gas sand formations, shales and deeper formations. Given the size of the field, there is potential to drill nearly 6,000 additional coal bed methane wells and tight gas sand wells. In addition, both companies believe there is significant shale gas potential at Nora.
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.
Disclosures in this news release that are not historical information, including those relating to drilling plans, may contain forward-looking statements. These statements are based on assumptions and estimates that both management teams believe are reasonable, based on currently available information; however, assumptions and future performance are subject to a wide range of business risks and uncertainties, and there is no assurance that the transaction will be consummated or 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. Neither company undertakes an obligation to publicly update or revise any forward-looking statements. Further information on risks and uncertainties is available in either company’s filings with the Securities and Exchange Commission.
