Range Resources has provided an update on its asset sale process. Several years ago, Range began to periodically sell non-core properties with the goal of providing additional capital for its higher return projects. In addition, by divesting of its more mature properties, Range strengthens its low-cost structure and focuses its operations. In concert with its asset divestiture process, in the second quarter of 2009, Range sold its Fuhrman Mascho Field properties in West Texas for approximately $182 million of proceeds.
Range has recently decided to offer for sale its tight gas sand properties in Ohio. The properties include approximately 3,500 producing wells with current net production of approximately 25 Mmcfe per day. Current production is 70% natural gas and 30% oil. The properties include approximately 418,000 net acres of leasehold and about 1,600 miles of pipeline and gathering system infrastructure.
Range has retained an advisor to assist in the sales process and plans to open a data room in early January 2010. Assuming a suitable bid is received Range anticipates closing the sale sometime in the first quarter of 2010.
Commenting on the announcement, John Pinkerton, Range's Chairman and CEO, said, "Our Ohio properties have long-life reserves and encompass more than two thousand potential drilling locations, as well as a highly qualified management and technical team. We believe an acquirer will find this to be an attractive opportunity. Assuming we complete a sale, we will direct the proceeds into our core projects. We plan to continue our strategy of using operating cash flow and asset sales to fund our ongoing capital program. By completing a sale early in 2010 as we expect, we can gain added flexibility with regard to our 2010 capital program."
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