Range Resources plans to increase its spending on Marcellus shale production in 2014. It plans to build even more lateral wells in the shale and implement more completion stages.
The Marcellus – which is considered to be the second or third largest natural gas play in the world – is a key part of the company’s portfolio.
The Texas-based Range Resources, which helped pioneer development of the Marcellus, holds nearly 1 million net acres across the formation and is one of its largest producers. Marcellus production reached 1 bcfd in late December and is expected to rise 20-25% in 2014.
The company’s Chief Operation Officer, Ray Walker, has seen strong production growth from the Marcellus over the past 4 years. “In 2009 we averaged 57 MMcfed from the Marcellus, and in 2013 we averaged 790 MMcfed. That’s 1,161% growth over 4 years,” Walker told analysts in February.
In southwest Pennsylvania, Walker said, Range now drills wells 93% faster than it did in 2009, the cost per foot of lateral drilled has decreased by 24%, and the company averages about 98 frac stages per crew per month—an 87% improvement compared to 4 years ago.
Range’s Marcellus shale production averaged 810 MMcfed in the fourth quarter of 2014, up 37% from the same period in 2013, and ended December above 1 bcfd.
The formation accounted for the bulk of the Range’s fourth-quarter production of 760 MMcfd of gas, 31,390 b/d of NGL, and 11,220 b/d of crude and condensate.
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