Range Resources (RRC) has built an acreage position in the Barnett Shale over the last few years. The company has 1000 locations to drill on 42,000 acres in the play, all in the area of the Barnett Shale considered non core. These properties are located mostly in Parker, Hood, Ellis, and Dallas County.
The following is a summary of the economics of the Barnett Shale for Range Resources:
EUR - 3.0 Bcf
Well Cost - $2.6 million
Finding and Development costs - $1.14/mcfe
Range Resources says it will earn a 32% rate of return using the above assumptions and a NYMEX price of $5.00 per Mcf.