Range Accelerates Drilling Program in Horizontal Mississippian Play

  Range Accelerates Drilling Program in Horizontal Mississippian Play

Business Wire

FORT WORTH, Texas -- November 29, 2012

RANGE RESOURCES CORPORATION (NYSE: RRC) announced today that its planned
five-rig drilling program for 2013 in the Horizontal Mississippian play along
the Nemaha Ridge in Oklahoma and Kansas is already underway.

  *Range announces two new wells with 24-hour initial production rates to
    sales each greater than 1,000 boe per day averaging 82% liquids.
  *Range has completed 18 horizontal wells in 2012 with four of these wells
    having initial 24-hour production rates to sales greater than 1,000 boe
    per day averaging 83% liquids.
  *Updated production results continue to reaffirm the Company’s estimated
    600 Mboe EUR for the greater than 3,500 foot lateral well design.
  *157,000 net acres have been accumulated in Range’s Nemaha Ridge core area
    where geological characteristics have historically produced superior

Commenting on the announcement, Jeff Ventura, Range’s President and CEO, said,
“Range continues to be encouraged that our Horizontal Mississippian results
are generating very attractive returns for our shareholders. Range believes
its location along the Nemaha Ridge largely accounts for our positive results.
Our technical team has done a great job targeting this core area of the play,
which is essential for success. We believe our 2012 results with four wells
having initial rates over 1,000 boe per day, spanning an eleven mile width of
the Nemaha Ridge, confirm that we have identified a core area of the play. We
are concentrated in those areas with the best historical oil results with over
4,500 vertical wells confirming our targeted area of development along the
Nemaha Ridge. With more production history, our first eight horizontal wells
from 2009 – 2011 are performing better than our original type curve for the
2,200 foot lateral wells. The production history on the first 18 wells in our
2012 program, with greater than 3,500 foot laterals, is resulting in a
projected estimated ultimate recovery of 600 Mboe for this group of longer
lateral wells.”

“Given our continued positive developments in the play, we have accelerated
the start date of our five-rig program, originally slated to begin in the
first quarter of 2013. We are becoming increasingly confident that the
Horizontal Mississippian play will be a high return, low-cost liquids play
that complements our Marcellus Shale play in Pennsylvania. Given our large,
concentrated acreage position, the Horizontal Mississippian play has the
potential to deliver outstanding returns and excellent per share growth for
our shareholders for many years to come.”

Determining the core part of the play –

Range has accumulated approximately 157,000 net acres of leasehold in the
eastern portion of the Horizontal Mississippian Play located primarily in Kay
County, Oklahoma and Cowley County, Kansas. Essentially all of Range’s acreage
is located on the Nemaha Ridge which runs primarily north/south and is
approximately 15 to 20 miles wide. The Mississippian Lime formation was
originally developed many years ago by drilling vertical wells. Over 4,500
older vertical wells have been drilled around and among Range’s leasehold
position. Historically, the better vertical oil wells were drilled along the
Nemaha Ridge. Along portions of the Nemaha Ridge, there is a Chat component in
the formation which provides up to 30% to 40% porosity as compared to 3% to 5%
in the Lime portion of the formation. In addition, since the Nemaha Ridge was
thrusted up, Range believes that the area along the Ridge has more natural
fracturing creating better permeability within the reservoir which enhances
hydrocarbon flow. Historical vertical well results indicate that the eastern
portion of the play, where Range’s acreage is located, is more “oily” and that
the play becomes more “gassy” as it moves west. Over 90% of the historical
vertical wells on the eastern side of the play have been classified as oil
wells. The Mississippian play is a project that Range has been testing and
evaluating methodically since 2006. We deliberately tested the play with over
100 new vertical wells of our own before we moved to horizontal development in
2009. In summary based on our evaluation to date, Range believes that portion
along the Nemaha Ridge where we have focused our development will likely
represent the “core” of the Horizontal Mississippian Play due to being higher
structurally, a higher Chat component, a higher degree of natural fracturing
and a higher proportion of oil and NGLs in the production stream.

Two new 1,000+ boe per day wells announced –

Range brought on production two additional wells with initial 24-hour
production rates to sales in excess of 1,000 boe per day since the third
quarter conference call – the Dakota #9-5S and the Troche #1-4N. The table
below provides information on the four wells completed as part of the 2012
drilling program with peak 24-hour production rates to sales of more than
1,000 barrels of oil equivalent per day.

                  Peak 24-hour rate to sales                             
Well     Working    Liquids   Oil       NGL       Gas       Total   Lateral   Frac
Name                %        (bblpd)  (bblpd)  (mcfpd)  boepd   length    stages
Balder   86%        82%       782       339       1,448     1,363   3,911     19
Ann      75%        87%       834       230       980       1,227   3,985     20
Dakota   100%       79%       528       311       1,328     1,060   4,296     20
Troche   75%        85%       680       224       961       1,064   3,946     20

The Balder and Dakota wells are approximately eleven miles apart, being on the
eastern and western sides of the Nemaha Ridge with the Nancy Ann and Troche
wells in between. Range believes these wells significantly de-risk this area
along the Nemaha Ridge. With its greater liquids content, we estimate that
with 80-acre spacing using 4,000 foot laterals, Range would expect to recover
approximately 10% of the original oil in place. Currently, Range is generally
drilling only one well per 640 acre section in order to hold leases and
install infrastructure.

Updated Decline Curve Information –

Based on its production results to date, Range has updated its decline curves
for the play. The updated production results reaffirm Range’s estimated 600
Mboe estimated ultimate recovery (“EUR”) per well for its 2012 program wells
with greater than 3,500 foot laterals. Range has posted updated zero-time
plots of actual production to date on its website which support the decline
curves and reserve estimates. To provide more detailed information, Range has
included decline curves for each product component – oil, NGLs and natural
gas. Given the characteristics of a depletion drive reservoir, initial oil
production rates are expected to approach 50% of production but are expected
to decline faster over time than the associated natural gas and NGL
production. Therefore, the decline curves are anticipated to be different for
each product component which is consistent with historical results. For its
acreage position, Range projects that the EUR per well will approximate
one-third oil, one-third NGLs, and one-third natural gas.

Range has turned 18 wells to sales in its 2012 drilling program with an
average 24-hour peak rate to sales of over 500 boe per day. Ten of those wells
have been online for 30 days or more and the 30-day average rate for these ten
wells is over 390 boe per day. These results are consistent with the Company’s
forecasted 600 Mboe EUR type curve for these wells. The average lateral of the
18 wells turned to sales this year is approximately 3,800 feet with an average
of 19 frac stages.

Based on the updated decline curves and estimated reserves of 600 Mboe, Range
projects a well level rate of return of 96% based on a flat $80.00 WTI oil
price and a flat $4.00 NYMEX natural gas price. This projected return is based
on expected drilling and completion costs of $3.4 million per well (which
includes $200,000 for water disposal infrastructure) and includes all
estimated costs for gathering, pipeline and processing.

Range’s Future Plans –

Based on its current plans, Range expects to run a five-rig program in 2013,
increasing to ten rigs in 2014 and 15 rigs in 2015. This multi-year rig
program is projected to hold substantially all of the Range acreage currently
within its lease terms. The five-rig 2013 program is expected to drill 68
wells, consisting of 51 producing wells and 17 water disposal wells. Range
expects to continue testing other completion and drilling techniques to
improve on the current results while varying lateral lengths and the number of
frac stages during the program.

Range believes that all necessary infrastructure needed is in place to allow
for the planned growth in 2013. Contracts are in place with two gathering and
processing companies covering five facilities in the area with sufficient
capacity for the expected growth in natural gas liquids and natural gas. Range
is targeting one disposal well for each five to eight producing wells drilled.
Currently, the Company believes its planned water disposal facilities will
handle all of the produced water required for the 2013 program. In addition,
Range is moving forward with plans to recycle produced water for fracture

Range has posted a presentation to its website entitled “Horizontal
Mississippian Update” with projected decline curves by product to show the
average estimated ultimate recovery from its wells using its current well
design along with zero-time production plots which support our EUR estimates
from these wells. Please review the presentation on Range’s website

RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading independent oil and
natural gas producer with operations focused in Appalachia and the southwest
region of the United States. The Company pursues an organic growth strategy
targeting high return, low-cost projects within its large inventory of low
risk, development drilling opportunities. The Company is headquartered in Fort
Worth, Texas. More information about Range can be found at
www.rangeresources.com and www.myrangeresources.com.

Except for historical information, statements made in this release such as
expected rates of return, estimated ultimate recovery volumes, expected high
returns, expected low-costs, expected per share growth, expected geological
results, expected de-risking of the play, expected future spacing units,
expected future decline rates, expected infrastructure availability, expected
improvement in well performance, expected greater capital efficiency, expected
addition of future value for shareholders, expected amount of future capital
spending, expected timing, methods utilized and number of rigs related to
drilling operations and expected timing of infrastructure improvements 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 Range’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
results of hedging transactions, 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. Range undertakes no obligation to publicly
update or revise any forward-looking statements.

Estimated ultimate recovery, or “EUR,” refers to our management’s internal
estimates of per well hydrocarbon quantities that may be potentially recovered
from a hypothetical future well completed as a producer in the area. These
quantities do not necessarily constitute or represent reserves within the
meaning of the Society of Petroleum Engineer’s Petroleum Resource Management
System or the SEC’s oil and natural gas disclosure rules. Our management
estimated these ultimate recoveries based on our previous operating experience
in the given area and publicly available information relating to the
operations of producers who are conducting operating in these areas. Actual
quantities that may be ultimately recovered from Range's interests may differ
substantially. Factors affecting ultimate recovery include the scope of
Range's drilling program, which will be directly affected by the availability
of capital, drilling and production costs, commodity prices, availability of
drilling services and equipment, drilling results, lease expirations,
transportation constraints, regulatory approvals, field spacing rules,
recoveries of gas in place, length of horizontal laterals, actual drilling
results, including geological and mechanical factors affecting recovery rates
and other factors. Estimates of ultimate recoveries may change significantly
as development of our resource plays provides additional data. In addition,
our production forecasts and expectations for future periods are dependent
upon many assumptions, including estimates of production decline rates from
existing wells and the undertaking and outcome of future drilling activity,
which may be affected by significant commodity price declines or drilling cost

Further information on risks and uncertainties is available in Range’s filings
with the Securities and Exchange Commission (“SEC”), which are incorporated by
reference. Investors are urged to consider closely the disclosure in our most
recent Annual Report on Form 10-K, available from our website at
www.rangeresources.com or by written request to 100 Throckmorton Street, Suite
1200, Fort Worth, Texas 76102. You can also obtain this Form 10-K by calling
the SEC at 1-800-SEC-0330.


Range Resources Corporation
Investor Contacts:
Rodney Waller, 817-869-4258
Senior Vice President
David Amend, 817-869-4266
Investor Relations Manager
Laith Sando, 817-869-4267
Senior Financial Analyst
Michael Freeman, 817-869-4264
Financial Analyst
Media Contact:
Matt Pitzarella, 724-873-3224
Director of Corporate Communications