NEWS RELEASE

 

RANGE YEAR-END RESERVES INCREASE

 

 

FORT WORTH, TEXAS, January 30, 2003…RANGE RESOURCES CORPORATION (NYSE: RRC) announced today that its proved reserves at December 31, 2002 totaled 578 Bcfe, comprised of 440 Bcf of natural gas and 23 million barrels of oil and liquids.  During the year, reserves increased a net 65 Bcfe or 13%.  Discoveries and extensions added 63 Bcfe, positive performance revisions added 6 Bcfe and 19 Bcfe were acquired.  Upward revisions due to higher oil and gas prices added a further 34 Bcfe, bringing the total reserve increase for the year to 121 Bcfe.  The increase was offset by 55 Bcfe of production and the sale of 2 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%, jumped to $976 million, representing a 145% increase during the year.  The valuation was based on year-end NYMEX prices of $4.75 per mcf and $31.17 a barrel, compared to $2.63 per mcf and $20.38 a barrel one year earlier.  At December 31, 2002, 76% of the Company's proved reserves by volume were natural gas.  More than 80% of the reserve value was attributable to proved developed reserves.  At year-end, the Company’s reserve life index stood at 10.6 years.

 

In total, the Company replaced 222% of production in 2002.  Excluding the impact of price increases, reserve replacement would have been 160%, including 126% from drilling and performance and 34% from acquisitions.  Overall finding costs in 2002 averaged $0.89 per mcfe.  Without the benefit of price revisions, finding costs would have averaged $1.24 per mcfe.

 

Commenting, John H. Pinkerton, Range’s President, said, “We were pleased with the growth in the Company's reserve base in 2002.  The increase was a direct reflection of improving technical capabilities and the Company's expanding inventory of high-return drilling opportunities.  Perhaps most importantly, last year marked the first time in more than five years that Range more than replaced production with the drill bit.  The achievement marks one more critical step in restoring the Company's financial and operational health.   In 2003, we expect to further expand our drilling program and to achieve growth in production as well as reserves.”

 

RANGE RESOURCES CORPORATION 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 expected capital expenditures, acquisitions, production growth and 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.

 

 

                                                                                                                                                            ­­

                                                                                                                                    2003-2

Contact:            Rodney Waller, Senior Vice President

Karen Giles                                          

(817) 870-2601

www.rangeresources.com

 

 

 

 

Proved Oil and Gas Reserve Summary

 

 

 

 

2001

 

2002

 

Change

Proved reserves

 

 

 

 

 

 

      Oil and NGL (Mbbl)

 

20,680

 

22,952

 

+11%

      Gas (Mmcf)

 

388,927

 

440,267

 

+13%

      Mmcfe (6:1)

 

513,005

 

577,977

 

+13%

 

 

 

 

 

 

 

Future net cash flow ($Millions)

 

 

 

 

 

 

      Undiscounted

 

$    750.0

 

$  1,831.7

 

+144%

      Present value at 10%

 

$    399.2

 

$     976.3

 

+145%

 

 

 

 

 

 

 

Realized prices used in engineering

 

 

 

 

 

 

      Oil ($bbl)

 

$    17.59

 

$     27.52

 

+56%

      Gas ($mcf)

 

$      2.70

 

$       4.76

 

+76%

 

 

 

 

 

 

 

NYMEX Benchmark prices

 

 

 

 

 

 

      Oil ($bbl)

 

$    20.38

 

$     31.17

 

+53%

      Gas ($mcf)

 

$      2.63

 

$       4.75

 

+81%

 

 

 

 

 

 

 

    

 

 

 

 

2002 Reserve Reconciliation

(in Mmcfe)

 

 

Balance at December 31, 2001

 

513,005 Mmcfe

Discoveries and extensions

 

62,635

Purchases

 

18,526

Sales

 

(1,669)

Revisions

 

 

     Due to pricing

 

34,048

     Due to performance

 

6,205

Production

 

(54,773)

 

 

 

Balance at December 31, 2002

 

577,977 Mmcfe