Range Resources Corporation
) has begun spudding the Horizontal Mississippian play along the
Nemaha Ridge in Oklahoma and Kansas prior to its first-quarter
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The proposed five-rig drilling program is generating results
above expectations. The drilling site along the Nemaha Ridge is
possibly the most lucrative.
Range revealed that each of the two new wells with 24-hour
initial production rates to sales generated more than 1,000
barrels of oil equivalent per day (Boe/d), with liquids averaging
So far this year, Range has completed drilling 18 horizontal
wells, including four wells with initial 24-hour production rates
to sales greater than 1,000 Boe/d, averaging 83% liquids.
The updated projection continues to match Range's estimated
ultimate recovery of 600 thousand barrels of oil equivalent for
the greater than 3,500 foot lateral well design.
Range has gathered a net acreage of 157,000 in the core area of
Nemaha Ridge. The geological characteristics have shown
exceptional results previously.
Range expects the Horizontal Mississippian play to be a high
return, low-cost liquids play that is likely to be a right fit to
its Marcellus Shale play in Pennsylvania.
Range Resources also holds one of the highest risked unbooked
resource-to-proved reserves ratios in the industry. This
symbolizes a long-term visibility of its growth profile,
highlighting the depth of its inventory. Moreover, its large,
concentrated holdings in the Horizontal Mississippian play will
accentuate its growth prospects and be value accretive for its
Range, which recently became the anchor shipper on the Mariner
East Project -- a venture between
Sunoco Logistics Partners L.P.
MarkWest Energy Partners, L.P.
) -- retains a Zacks #3 Rank, which is equivalent to a Hold
rating for a period of one to three months. Longer term, we
maintain our Neutral recommendation.