Range Sells Gulf of Mexico Prospects
Range Resources Corp. has sold its Gulf of Mexico properties to a private company for $155 million.
The properties included Range's interests in 37 platforms in water depths ranging from 11 to 240 feet. None of the properties are operated by Range. At year-end 2006, Range estimated that the properties contained proved reserves approximating 40 Bcfe, representing 2% of its total proved reserves. As a result of the sale, Range will record a pre-tax gain of approximately $100 million in the first quarter of 2007.
John Pinkerton, Range's President and CEO, said, "We are extremely pleased with the sale of our Gulf of Mexico properties. This sale coupled with the February sale of Austin Chalk properties has generated $237 million of aggregate proceeds. In both cases, the properties were not integral to our future growth, so we elected to monetize them. The sales strengthen the balance sheet, enhance our asset quality, lengthen our reserve life and lower our unit cost structure. Most important, the sales allow us to accelerate the development of other properties where we are confident that we can aggressively grow production and reserves in the future."
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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