ITEM 9. Regulation FD
Disclosure
On October 21,
2003, Range Resources
Corporation issued a press release announcing its third quarter of 2003
production volumes, borrowing base status and other operational
information. A copy of this press
release is attached hereto as Exhibit 99.1.
ITEM 7. Financial Statements and
Exhibits
(c) Exhibits:
99.1
Press
Release dated October 21,
2003
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
RANGE RESOURCES CORPORATION
Roger S. Manny
Chief Financial
Officer
Date: October 21, 2003
EXHIBIT
INDEX
Exhibit Number
Description
99.1
Press Release dated October 21,
2003
EXHIBIT 99.1
NEWS
RELEASE
RANGE
PROVIDES OPERATIONAL UPDATE
FORT
WORTH, TEXAS, OCTOBER 21,
2003…RANGE RESOURCES CORPORATION
(NYSE: RRC) today provided an update on
its operations and financial position.
Based on drilling results
through September 30, the Company is on track to meet its production and reserve
growth targets for 2003. Third
quarter production averaged 159.2 Mmcfe per day, a slight increase over second
quarter and 5.2% higher than the prior-year period. With newly drilled wells steadily coming
online, production has continued to increase and currently exceeds 162 Mmcfe per
day.
In the third quarter,
approximately $28 million of the Company’s $105 million capital budget was
expended, funding the drilling of 105 (53.2 net) wells. Only 6 (3.9 net) of the wells proved
unproductive. The Company will
record dry hole expense of approximately $800,000 for the quarter. In the first nine months of 2003, 265
(147.8 net) wells were drilled at a total cost of $77 million. Eleven (7.9 net) of the wells were dry
holes. By September 30,
219
(121.0 net) of the wells had been placed on production, while the remaining 35
(18.9 net) wells were in various stages of completion or waiting on pipeline
connection.
Recent drilling results
included three successful wells in West
Texas. Two Canyon Sands wells in Sterling and
Sutton counties, drilled to 6,700 feet, and one Wolfcamp well in Glasscock
county, drilled to 8,400 feet, were completed and are currently producing 5.6
(2.7 net) Mmcfe per day in total.
In the Texas Panhandle and western Oklahoma, three wells were drilled
to approximately 9,000 feet and completed in the Morrow formation. One was turned to production at 1.5 (1.0
net) Mmcfe per day. The remaining
two wells, which tested 3.7 (2.0 net) Mmcfe per day combined, are expected to be
on production within two weeks. In
South
Louisiana, the Villejoin #1 was
completed as a successful offset to a Range exploratory discovery drilled late
last year. The Villejoin #1, which
was drilled to 12,200 feet, is currently producing 13.4 (4.3 net) Mmcfe per
day. One additional well in
South
Louisiana is scheduled to spud later
this year. In
Appalachia 76 (59.0 net) wells were
successfully drilled in the third quarter and are on production or in various
stages of completion or pipelining.
Drilling activity remains high with 12 rigs currently
running.
The Company also announced
that its bank group had recently approved an increase in the funds available
under its credit facility. The
borrowing base was increased by $10 million to $180 million. The increase was granted following the
banks’ semi-annual review of the Company’s reserves and operations. The Company currently has over $75
million of availability under the facility. At September
30, 2003, Range had $280 million of
total debt, down from $368 million at year-end 2002. At quarter-end, the debt-to-capital
ratio had fallen to 50% from 64% at year-end 2002.
Commenting on the
announcement, John
Pinkerton, Range’s President, said,
“Our drilling program is having solid success. Consequently, production continues to
rise. Fourth quarter production is
off to a good start, and over 30 wells are currently drilling, completing or
awaiting pipeline connection. We
are also pleased that our bank group is recognizing our progress and is
providing additional flexibility under the credit facility. With our stronger financial position, we
remain focused on our strategy of drill bit growth coupled with complementary
acquisitions.”
RANGE RESOURCES CORPORATION
(NYSE: RRC)
is an independent oil and gas company operating in the Permian, Midcontinent,
Gulf Coast and Appalachian regions of
the United
States.
Except for historical information, statements
made in this release, including those relating to anticipated debt reduction,
capital expenditures, reserve replacement,
production rates, well costs and the number of wells to be drilled are
forward-looking statements as defined by the Securities and Exchange
Commission. 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.
2003-24
Contact:
Rodney Waller, Senior Vice President
Karen Giles
(817) 870-2601
www.rangeresources.com
