Range Ups Capex Budget by 10%
Range Resources Corp. has set its 2007 capital budget at $698 million. This represents a 10% increase over 2006 expenditures.
The 2007 budget includes $600 million for drilling and recompletions, $58 million for land, $20 million for seismic and $20 million for the expansion and enhancement of gathering systems and facilities. Of the drilling and recompletion capital, 94% is attributable to lower risk development and exploitation activities, and 6% is attributable to higher risk exploration projects. Acquisitions, particularly those in proximity to existing properties, will continue to be pursued but are considered too unpredictable to be specifically budgeted. Based on the current futures prices and existing hedges, 2007 capital spending is expected to be funded entirely by internal cash flow and asset sales.
In 2007, Range expects to drill 924 gross (691 net) wells and undertake 72 (52 net) recompletions. Approximately 57% of the capital budget is attributable to the Southwestern region, 37% to the Appalachian region and 6% to the Gulf Coast region.
Commenting, John H. Pinkerton, Range's President, said, "The 2007 capital budget reflects our large, multi-year drilling inventory, which consists of more than 9,400 drilling opportunities. The strategy for our 2007 capital expenditures is consistent with prior years, in that our goal is to grow production and reserves at top quartile finding costs. Based on the drilling projects planned for 2007, we anticipate generating attractive returns on invested capital and have set a production growth target of 15%. With production increasing combined with our low cost structure and attractive hedge position, we anticipate posting another year of record financial results in 2007."
Range Resources Corp. is an independent oil and gas company operating in the Southwestern, Appalachian and Gulf Coast regions of the United States.
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