Range Resources achieved a significant milestone in the development of the Marcellus shale in Pennsylvania, with net production reaching 100 million cubic feet equivelant per day — an almost four-fold increase from the same time last year.
According to the company:
Range’s Marcellus Shale production target exit rate for 2010 is 180 to 200 Mmcfe net per day. Given the significant progress made in 2009, in all phases of the development process, Range has extended its forecast to include a 2011 exit rate from the Marcellus Shale of 360 to 400 Mmcfe net per day. It is important to emphasize that all the production results and targets referred to above are net to Range’s interest and exclude production attributable to landowners’ royalty interests and third-party working interests.
Range started 2009 with four rigs in the Marcellus and will end the year with eleven rigs, including both horizontal and vertical rigs. Range expects to have 16 rigs by the end of next year and 24 by the end of 2011.
John Pinkerton, Range’s chairman and CEO said “It’s becoming more and more clear that the Marcellus Shale will likely become a very large natural gas field. This is a game changer for Range and its shareholders, for Pennsylvania and energy consumers.”
A study by Penn State University predicts the Marcellus shale could create up 98,000 jobs and to contribute $14 billion to Pennsylvania’s economy in 2010.