Range Resources has acquired a privately held company owning producing oil and gas properties in the Permian Basin for $22.5 million. Range estimates the reserves attributable to the properties approximate 22 Bcfe. Oil comprises 75% of the production and 52% of the reserves are classified as proved developed. Current net production averages 3.3 Mmcfe per day with over 85% being operated by the Company. The properties have a reserve-to-production ratio of over 15 years. Range financed the acquisition by drawing on its bank credit facility.
Commenting, John H. Pinkerton, Range President stated, "This transaction fits well within our acquisition strategy as it is located in our largest core operating area and has meaningful development potential. Our technical team has already identified more than 60 recompletion and drilling opportunities which we will begin exploiting shortly."