NEWS RELEASE
RANGE REPORTS 286% RESERVE REPLACEMENT
FORT WORTH,
TEXAS, JANUARY 26, 2004…RANGE RESOURCES CORPORATION (NYSE: RRC) announced
today that its proved reserves at December 31, 2003 totaled 685 Bcfe, comprised
of 486 Bcf of natural gas and 33 million barrels of oil and natural gas liquids. During the year, reserves increased a net 107
Bcfe or 18%. Discoveries and extensions
added 69 Bcfe, 90 Bcfe were acquired and upward revisions added 7 Bcfe,
bringing the total increase for the year to 166 Bcfe. The increase was offset by 58 Bcfe of
production and the sale of 1 Bcfe of reserves.
The pretax present value
of the Company’s proved reserves at year-end, based on constant prices and
costs and discounted at 10% rose to $1.4 billion, representing a 45% increase
during the year. The valuation was based
on year-end NYMEX prices of $6.19 per Mmbtu and $32.52 a barrel, compared to
$4.75 per Mmbtu and $31.17 a barrel one year earlier. At
In total, the Company
replaced 286% of production in 2003, including 130% from drilling and revisions
and 156% from acquisitions. Excluding
the impact of price increases, reserve replacement would have been 271%. Total anticipated finding costs in 2003,
including all drilling, exploration, development and acquisition costs along
with the $12 million of costs associated with acreage and seismic investments
which generally benefit future years, averaged $1.26 per mcfe. Without the benefit of price revisions,
finding costs would have averaged $1.30 per mcfe.
Commenting, John H.
Pinkerton, Range’s President, said, “We are extremely pleased to have achieved
286% reserve replacement at an all-in cost of $1.26 per mcfe. This performance is a direct reflection of
the Company’s technical team and our strategy of steady drill bit growth
coupled with complementary acquisitions.
For 2004, we began the year with the largest, most diversified drilling
inventory in our history. Importantly, our
2004 drilling program is off to a fast start as we have 10 rigs running, plus 40
wells in the process of being completed or waiting on pipeline.”
RANGE
RESOURCES CORPORATION is an independent oil and gas company operating in the Southwest,
Except
for historical information, statements made in this release, including those
relating to expected finding and development costs in 2003 which are still
subject to audit and future reserve additions are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. These statements are based on assumptions and
estimates that management believes are reasonable based on currently available
information; however, management’s assumptions and the Company’s future
performance are subject to a wide range of business risks and uncertainties and
there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual
results to differ materially from those in the forward-looking statements,
including, but not limited to, the volatility of oil and gas prices, the costs
and results of drilling and operations, the timing of production, mechanical
and other inherent risks associated with oil and gas production, weather, the
availability of drilling equipment, changes in interest rates, litigation,
uncertainties about reserve estimates, and environmental risks. The Company undertakes no obligation to
publicly update or revise any forward-looking statements. Further information on
risks and uncertainties is available in the Company’s filings with the
Securities and Exchange Commission, which are incorporated by reference.
_____________________________________________________________________________________2004-3
Contact:
(817) 870-2601