Range Resources has signed a definitive agreement with EV Energy Partners, L.P. and certain institutional partnerships managed by EnerVest, Ltd. to sell its tight gas sand properties in Ohio for a purchase price of $330 million. The sale is expected to close in late March and is subject to customary closing conditions and purchase price adjustments.
Several years ago, Range began to 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. As part of 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.
The Ohio properties include approximately 3,300 producing wells with 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.
Commenting on the announcement, John Pinkerton, Range’s Chairman and CEO, said, "The sale of the Ohio properties will help streamline our business and provide additional flexibility in implementing our 2010 capital spending program. Importantly, we are well positioned to deliver another year of double-digit production and reserve growth on a per share basis, while maintaining our strong financial position."
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