Fort Worth-based oil and gas producer Range Resources said Wednesday it increased its proved reserves by 29 percent from a year ago as of Dec. 31, to a company record 6.5 trillion cubic feet equivalent. That included 1.767 tcf added by drilling and no acquisitions, and amounted to more than seven times its 2012 production of 276 billion cubic feet. As required by regulators, it made its reserves estimate based on average commodity prices over the preceding 12 months, using $2.76 per million Btu for natural gas and $95.05 a barrel for crude oil. In 2011 the averages were $4.12 for gas and $95.61 for oil.
Range said its all-in finding and development cost was expected to average 87 cents per 1,000 cubic feet equivalent, including land expenses and a drilling cost of 68 cents per mcfe. Range said its reserves are 74 percent gas, 22 percent natural gas liquids and 4 percent crude oil. CEO Jeff Ventura said it was the company's seventh consecutive year of reserves growth. He said a focus on liquids is illustrated by a 64 percent increase in liquids reserves in 2012, compared to a 20 percent increase for gas. That trend is expected to repeat in 2013, he said.
-- Jim Fuquay