Range Resources (RRC) has anointed a portion of the company’s Marcellus Shale properties in southwestern Pennsylvania as “super rich” due to the high BTU content of the production stream. The company estimates that the natural gas stream of wells in this area will have a minimum 1350 Btu.
Range Resources has 570,000 net acres located in southwestern Pennsylvania and estimates that 125,000 net acres are in this “super rich” portion of the Marcellus Shale. One recent well completed in this area had an initial 24 hour production test rate of 6.4 million cubic feet of natural gas and 1,266 barrels of liquids per day.
Range Resources has drilled and completed eight wells into this area and has released an estimated ultimate recovery (EUR) of 305,000 barrels of natural gas liquids, 95,000 barrels of condensate and 3.9 Bcf of natural gas per well.
Range Resources estimates that once in development mode, the cost to drill and complete a “super rich” well will average $4.7 million. The typical well will have a lateral length of 3,742 feet and fourteen hydraulic fracturing stages. The well is estimated to generate an internal rate of return of 95% using the current strip and a net present value of $10.7 million per well.