Range Resources Corporation – an independent U.S. oil and gas producer with operations focused in stacked-pay projects in the Appalachia Basin – has announced that it has completed the sale of its Nora assets for $865 million.
The Texas-based company said in a statement issued on 30th December that the sold properties encompass approximately 3,500 operated wells and approximately 460,000 net acres in the Nora/Haysi combined fields located primarily in southwestern Virginia.
Third quarter production for the Nora assets was 109 Mmcf per day representing 7.5 percent of Range’s net production. The net proceeds were used to reduce debt by 24% from the September 30, 2015 balance.
The company said that the move further strengthens Range’s financial position by reducing leverage and enhancing liquidity. After the sale, the borrowing base under the company’s revolving credit facility remains unchanged at $3 billion. The sale is also expected to reduce direct operating expenses, brokerage natural gas and marketing expenses and general and administrative expenses for 2016.
The decision was in line with Range’s strategy of pursuing organic growth while targeting high return, low-cost projects within its large inventory of low risk development drilling opportunities.
Range Resources will include the Nora operations for the full fourth quarter of 2015.
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